When a decrease of a firm's scale of production leads to lower average costs per unit produced, there is an increasing return to scale.
Answer the following statement true (T) or false (F)
False
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Comparing a perfectly competitive market to a single-price monopoly with the same costs, we see that
A) both markets are equally efficient in their use of resources. B) the monopoly market always is more efficient in the use of resources. C) the perfectly competitive market achieves efficiency in resource use while the monopoly market does not. D) the monopoly market achieves efficiency in resource use while perfectly competitive market does not. E) None of the above answers is correct because comparing a perfectly competitive market to a monopoly is impossible.
What occurs in the second stage of economic development?
A) Most of the labor force works in agriculture. B) The service sector comes to the forefront. C) The manufacturing sector declines in importance. D) Manufacturing gains in importance and employs a large portion of the labor force.
If everyone in the economy correctly anticipates the inflation rate, the unemployment rate
A) will be the natural rate of unemployment. B) will be the cyclical rate of unemployment. C) will be inversely related to the expected inflation rate. D) will be positively related to the expected inflation rate.
If the Bank of Japan buys yen to prevent the yen from appreciating,
a. it is probably also trying to profit from that operation b. it is probably also trying to maintain an interest rate target c. it is engaging in bilateral arbitrage d. it is engaging in a managed float e. it is wasting its time and effort