When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are:
a. economies of scale.
b. diseconomies of scale.
c. constant returns to scale.
d. diminishing returns.
e. some fixed factors of production.
c
You might also like to view...
A tax is progressive if the ratio of taxes to income rises as income rises.
Answer the following statement true (T) or false (F)
Diversification
A) puts the law of large numbers to work for you. B) eliminates the risk of investing in the stock market. C) generally leads to lower rates of return than an average stock picker could earn from equity investments. D) indicates that you should invest in the company for which you work and in whom you trust.
Use the graph to answer the following question:
Suppose the loanable funds market is initially in equilibrium at point A, but then implementation of fiscal policy causes crowding out to occur. After the implementation occurs, the equilibrium in the market would be best represented by
A. point A. B. point B. C. point C. D. point D.
In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000.Look at the scenario Technological Progress and Productivity Growth in Techland. What share of the growth rate of real GDP per capita was attributable to higher total factor productivity?
A. 2.0% B. 5% C. 8.75% D. 6.5%