In the long-run average total cost curve below, the:
A. movement from B to C reflects the law of diminishing returns.
B. movement from A to B reflects diseconomies of scale.
C. realization of economies of scale would shift the entire curve downward.
D. movement from B to C reflects diseconomies of scale.
Answer: D
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The above figure shows the U.S. market for replacement cell phone batteries. Area B + area D is the
A) tariff revenue. B) decrease in consumer surplus due to the tariff. C) deadweight loss from tariff. D) increase in producer surplus due to the tariff. E) gain in total surplus due to the tariff.
If the full-employment level of real GDP is greater than the equilibrium level of real GDP, the nation would be experiencing a(n)
A) inflationary gap. B) recessionary gap. C) demand-pull inflation. D) rising prices.
Explain why producers rather than consumers may be the beneficiaries of regulation. Does the evidence support this view?
How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP)?
a. GNP = GDP - losses from depreciation b. GNP = GDP + income earned by U.S. citizens abroad - income that foreign citizens earned in the U.S. c. GNP = GDP + transfer payments to households + - indirect sales taxes d. GNP = GDP - depreciation - retained earnings