A firm is experiencing ________ on the upward-sloping portion of a firm's long run average cost curve.
A. constant returns to scale
B. increasing returns to scale
C. decreasing returns to scale
D. diminishing marginal returns
Answer: C
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In the Solow model, if f(k) = 8k0.5, s = 0.2, n = 0.3, and d = 0.1, what is the value of k at equilibrium?
A) 1 B) 4 C) 9 D) 16
A possible solution to the network externality problem is the government limiting the size of networks
a. True b. False Indicate whether the statement is true or false
Market demand curves are found by
a. vertically summing individual demand curves. b. horizontally summing individual demand curves. c. summing individual demand curves in a parallel fashion. d. adding the slopes of individual demand curves.
Stark Widgets produces 100 widgets per week at a price of $10 per widget. The manager decides to increase production to 10,000 widgets per week by assigning skillful workers. The average cost of production decreases with the increase in production. This implies that the firm experiences _____
a. privatization b. globalization c. economies of scale d. diseconomies of scale