If output is increased in the long-run, average production costs in the presence of internal diseconomies of scale will ________, and in the presence of external diseconomies of scale, will ________
A) decrease; decrease
B) increase; remain constant
C) remain constant; increase
D) decrease; remain constant
E) increase; decrease
C
You might also like to view...
Within a game theory model, if a change in decision-making raises corporation A's profits by $100 and lowers corporation B's profits by $100, the game is a
A) negative-sum game. B) zero-sum game. C) positive-sum game. D) cooperative game.
Under Section 2 of the Sherman Act,
a. firms cannot act in ways that increase prices b. contracts between parties are deemed binding c. firms cannot operate in perfectly competitive markets d. firms that earn short-run profits face penalties e. a firm cannot attempt to monopolize an industry
A recessionary gap exists when
a. real GDP exceeds nominal GDP. b. nominal GDP exceeds real GDP. c. real GDP exceeds potential GDP. d. potential GDP exceeds real GDP.
A price taker is a buyer or seller who:
A. has the goal of maximizing market share, not profits. B. has complete control over setting the market price. C. can influence the market price. D. has no control over setting the market price.