Assume that an industry requires a very specialized technology that involves high start-up costs for new firms no matter what level of output they produce. In the long run, at low levels of output, these firms will tend to exhibit
a. diminishing marginal returns
b. increasing marginal returns
c. diseconomies of scale
d. constant returns to scale
e. economies of scale
E
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Discuss how the Fed selling securities in the open market ripples through the different sectors of the economy
What will be an ideal response?
A tax is progressive when
a. the rate increases when income decreases. b. the rate stays the same when income increases. c. the rate increases when income increases. d. the rate changes as taxpayers become older.
In Mexico, many garment or tailoring shops found they could entice many young people to work for them if they offered clean, air-conditioned work areas with high-quality locker rooms to clean up in after the workday. Typically, traditional garment shops had to offer ________ to get workers to apply for the hard, repetitive, and somewhat dangerous work.
A. compensating differentials B. benchmark competitive wages C. monopoly wages D. wages based on human capital development of each employee
A coalition of firms who agree to restrict output for the purpose of earning an economic profit is called a(n):
A. oligopoly. B. duopoly. C. cartel. D. pure monopoly.