A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached regarding the firm's returns to scale?
A) The firm experiences increasing returns to scale.
B) The firm experiences increasing, constant, and decreasing returns in that order.
C) The firm experiences first decreasing, then increasing returns to scale.
D) The short-run average cost curve reveals nothing regarding returns to scale.
D
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The annual statement of the outlays, tax revenues, and surplus or deficit of the government of the United States is the federal
A) budget. B) deficit record. C) debt to the public. D) spending. E) surplus record.
Assume Coke and Pepsi are substitutes. Holding other things constant, if the price of Coke increases
a. Demand for Pepsi falls b. Demand for Pepsi increases c. Quantity demanded for Pepsi falls d. Quantity demanded for Pepsi increases
Economies of scale suggests that as the level of production:
a. decreases, the average cost of producing each individual unit increases. b. increases, the average cost of producing each individual unit increases. c. decreases, the average cost of producing each individual unit declines. d. increases, the average cost of producing each individual unit declines.
John gave up a night of pizza with friends to study for his calculus exam. He is illustrating which concept?
a. The Time Value of Money b. Opportunity Cost c. Sunk Cost d. Comparative Advantage