In the long run when average total cost does not depend on the quantity of output, this is called:
A. economies of scale.
B. constant economies to scale.
C. diseconomies of scale.
D. minimum average total cost.
Answer: B
You might also like to view...
Refer to the scenario above. A basket of goods worth $1 in the U.S. has a price of ________ in Country 2
A) 320 ritz B) 50 ritz C) 12.5 ritz D) 25 ritz
Unlike an internally held public debt, an externally held public debt
a. cannot pass the debt burden on to future generations b. can pass the debt burden on to future generations c. expires upon maturity d. cannot be reduced because foreigners hold the debt e. causes crowding out
The federal government increases spending by $50 billion and the main effect is an increase in the price level. It must be true that the economy is operating on the
a. horizontal portion of the aggregate demand curve. b. horizontal portion of the aggregate supply curve. c. vertical portion of the aggregate supply curve. d. vertical portion of the aggregate demand curve.
Private parties may choose not to solve an externality problem if the transaction costs are large enough
a. True b. False Indicate whether the statement is true or false