Suppose that a firm's long-run average total costs of producing televisions decreases as it produces between 10,000 and 20,000 televisions. For this range of output, the firm is experiencing
a. economies of scale.
b. constant returns to scale.
c. diseconomies of scale.
d. coordination problems.
a
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If all Pareto improvements have been made
A) the result is increased government regulations. B) the outcome is Pareto efficient. C) consumer surplus is maximized. D) monopolists are unhappy.
Total surplus is
a. equal to consumer surplus minus producer surplus. b. equal to the total value to buyers minus the total cost to sellers. c. equal to consumers' willingness to pay plus producers' cost. d. greater than the sum of consumer surplus plus producer surplus.
A price ceiling that is set above the equilibrium price:
A. will have no effect on the market. B. will lead to excess supply in the market. C. will lead to excess demand in the market. D. will lead to a black market.
What is the difference between the short run and the long run?
Please provide the best answer for the statement.