What is the optimal scale of plant?
What will be an ideal response?
The optimal scale of plant is the scale of plant that minimizes long-run average cost.
You might also like to view...
Answer the following statements true (T) or false (F)
1. The innovation theory is classified among the real or physical causes of the business cycle. 2. The theory of rational expectations is classified as a psychological cause of the business cycle. 3. The under consumption theory is classified as a real or physical cause of the business cycle. 4. The under investment theory is classified as a monetary cause of the business cycle. 5. In using the GDP as a measure of business cycles, it is best to use real GDP.
When an economy is experiencing an economic boom and operating beyond its long-run capacity,
a. strong demand for investment funds will push interest rates upward. b. weak demand for resources will push the prices of resources downward. c. weak demand for investment funds will cause the real interest rate to decline. d. the unemployment rate will be greater than its natural rate.
If the popular television show The Bachelor is shown on pay-per-view television every Monday at 9pm, then the demand curve for each episode is given below.
If the regulated pay-per-view charge is decreased from $20 to $0 per household, what would be the gain in total economic surplus?
A. $320 million B. $4,000 million C. $720 million D. $1,280 million
Assume that the price overestimates the value that society places on the flu vaccine. If firms produce where P = MC, firms will be producing ________ the socially efficient amount of flu vaccine.
A. more than B. less than C. exactly D. sometimes more than and sometimes less than