An increase in a firm's scale of production leads to no change in average total cost as long as there are
A. negative returns to scale.
B. diseconomies of scale.
C. constant returns to scale.
D. economies of scale.
Answer: C
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The host at a party offers Justin a sixth beer. Justin says, “No thanks, man. The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents.” If Justin consumes the sixth beer, his total utility will
A. rise by 10 cents. B. reach a plateau and remain constant. C. fall by 10 cents. D. fall below his marginal utility.
A consumer values a house at $525,000 and a producer values the same house at $485,000 . If the transaction is completed at $510,000 . what amount of tax will result in unconsummated transaction?
a. A tax of $9,000 b. A tax of $14,000 c. A tax of $15,000 d. A tax of $18,000
In a market economy:
a. collective decision-making is more important than individual decision-making. b. goods and services are distributed as if by an "invisible hand" to those who can not afford them. c. profit provides an incentive to be productive. d. the distribution of wealth is equitably distributed.
If most firms in an industry are earning a 7 percent rate of return on their assets, but your business is earning 9 percent, your rate of economic profit is
a. minus 2 percent. b. 2 percent. c. 9 percent. d. 16 percent.