A U-shaped long-run average cost curve indicates that
A) economies of scale follow diseconomies of scale.
B) diseconomies of scale follow economies of scale
C) economies of scale and economies of scope are the same.
D) economies of scale dominate diseconomies of scale over all levels of production.
B
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The tendency for higher government budget deficits to decrease investment is called the
A) crowding-out effect. B) deficit effect. C) Ricardo-Barro effect. D) inflation effect. E) wealth effect.
Tom takes 20 minutes to cook an egg and 5 minutes to make a sandwich. Jerry takes 15 minutes to cook an egg and 3 minutes to make a sandwich. Both individuals will be better off if
A) Tom trades sandwiches in exchange for eggs. B) Jerry trades sandwiches in exchange for eggs. C) they trade, no matter who trades sandwiches and who eggs. D) they don't trade.
Everything else held constant, if the expected return on U.S. Treasury bonds falls from 8 to 7 percent and the expected return on corporate bonds falls from 10 to 8 percent, then the expected return of corporate bonds ________ relative to U.S
Treasury bonds and the demand for corporate bonds ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls
From 2009 to 2012, the federal budget deficits were the largest budget shortfalls since World War II. The primary reason for the record-large deficits was
a. the recession experienced during this time. b. severe budget tightening by members of Congress. c. the shift in political power from Republicans to Democrats. d. All of the above are correct.