When a firm experiences economies of scale, long-run average total cost falls as the quantity of output increases

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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Use the following graph for a monopolistically competitive firm to answer the next question.In the short run, this monopolistically competitive firm will set price at

A. $65 and produce 35 units of output. B. $55 and produce 45 units of output. C. $50 and produce 35 units of output. D. $52 and produce 50 units of output.

Economics

Refer to Table 13-1. What portion of the marginal revenue of the 4th unit is due to the output effect and what portion is due to the price effect?

A) output effect = -$0.50; price effect = $5.00 B) output effect = $24.00; price effect = $19.50 C) output effect = $6.00; price effect = -$1.50 D) output effect = $6.50; price effect = $2.00

Economics

In response to an unanticipated easing of monetary policy, output ________ at first, then ________ after about four months

A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; rises significantly D) remains roughly unchanged; falls significantly

Economics

The economy is in macroequilibrium at the national income level where the aggregate expenditure curve intersects the 45-degree line

Indicate whether the statement is true or false

Economics