Economies of scale exist when the
A) total cost of production falls as the output increases.
B) cost of producing a unit of a good falls as its output decreases.
C) cost of producing a unit of a good falls as its output increases.
D) firm uses specialized resources to produce a range of goods and services.
C
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Drivers are charged a price to use a tollway. But even tollways, such as the Tri-State Tollway near Chicago, become heavily congested during the morning and evening rush hours. Thus,
A) the rush hour represents a surplus of cars. B) your textbook author is wrong in claiming congestion is caused by zero prices. C) higher tolls are required during rush hours to reduce congestion. D) growing population is indeed the problem.
Derived demand:
A. is the sum total of all factors of production for a given good or service. B. refers to the demand for variable inputs when at least one fixed input exists. C. refers to the supply decisions of a final good influencing the demand for the inputs needed to make it. D. is only computed for the long-run demand decisions based on short-run marginal changes.
Only the federal government can create money.
Answer the following statement true (T) or false (F)
A welfare payment that is reduced when the recipient earns more income is a(n):
A. unconditional benefit. B. fair benefit. C. inducement for the poor to find employment. D. means-tested benefit.