Economic conditions favor firms getting larger (producing larger quantity) when the firms are producing under conditions of:

a. Decreasing returns to scale
b. Increasing returns to scale
c. Constant returns to scale


b. Increasing returns to scale

Economics

You might also like to view...

Economists use the mechanism of supply and demand to study:

a. inflation b. unemployment c. environmental protection d. both a and b e. all of these

Economics

The conservative theory of poverty blames _____ for welfare dependency.

A. the poor B. the government C. both the poor and the government D. neither the poor nor the government

Economics

The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as

A) the Taylor rule. B) a liquidity trap. C) a zero-sum game. D) an interest rate panic.

Economics

The normal market demand curve for money is

A. A downward-sloping demand curve, where more money is held at lower interest rates. B. An upward-sloping demand curve, where more money is held when interest rates are higher. C. A vertical demand curve, where the same amount of money is held regardless of the interest rate. D. A horizontal curve at very high interest rates, where the quantity demanded changes but the interest rate is constant.

Economics