Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, demand for inputs causes input prices to rise. It is likely that continued growth will result in:
A. economies of scale.
B. reduced fixed costs.
C. diseconomies of scale.
D. increasing marginal returns.
Answer: C
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Total revenue decreases as the price of a good increases, if the demand for the good is
A. unitary elastic. B. elastic. C. inelastic. D. perfectly elastic.
"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run, what is TRUE if the production of ethanol increases?
A) The demand for corn will increase. B) The supply of ethanol will decrease. C) The supply of corn will increase. D) The demand for ethanol will increase.
The market demand curve is the sum of individual quantities demanded at each price
a. True b. False
A ptomaine poisoning scare causes a decrease in the demand for canned tuna fish. Everything else equal, the demand curve for aluminum cans will
a. become steeper. b. become flatter. c. fall. d. rise.