All of the following statements are true of the minimum efficient scale except one. Which one?
A) Any increase in the scale of operation will encounter either constant returns to scale or diseconomies of scale.
B) All possible economies of scale have been exhausted.
C) The short-run average total cost curve's minimum point is equal to the long-run average cost curve's minimum point.
D) An increase in the output level will increase profit.
D
You might also like to view...
Refer to Table 2.3. Assume that 2010 is the base year. The GDP deflator for 2010 is
A) 67.1. B) 84.5. C) 100.0. D) 118.3.
The demand curve facing the monopolistically competitive firm is:
A. flat. B. U-shaped. C. vertical. D. None of these statements is true.
If spending in an economy increases by 3% and real GDP increases by 1%, the result will be:
What will be an ideal response?
Hard money:
A. includes cash. B. is the least narrow definition of money. C. is not very liquid. D. cannot always be used in transactions immediately, but is accessible.