A firm is said to operate with constant returns to scale if its production cost increases by four times when its output is doubled.
Answer the following statement true (T) or false (F)
False
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A likely consequence of debt default is: a. a decrease in the federal cost of borrowing
b. an increase in unemployment due to growing uncertainty. c. a sudden decline in the market interest rates. d. an increase in the credit flows in an economy. e. a sudden increase in the investment flows in the economy.
Which of the following is true of a successful cartel?
a. A successful cartel offers consumers the lowest possible price for a product. b. A successful cartel minimizes profits for its members. c. A successful cartel behaves as a monopolist in the market. d. A successful cartel produces a quantity greater than that produced in a competitive market. e. A successful cartel is always stable.
Which of the following is not one of the three pillars of productivity growth?
a. rate of capacity utilization b. rate of technological improvement c. rate of improvement in workforce quality d. rate of capital expansion
The return to schooling for society is higher than the return to schooling for the individual if
a. the concept of diminishing returns applies to education. b. the concept of constant returns to scale applies to education. c. human capital conveys positive externalities. d. investment in human capital involves no opportunity costs.