If the minimum points of all the possible short-run average total cost curves become successively lower as quantity of output increases, then:
a. the firm should try to produce less output.
b. total fixed costs are constant along the LRAC curve.
c. there are economies of scale.
d. the firm is probably having significant management problems.
e. when output is doubled, total costs are doubled.
c
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If the institutions in an economy change from being extractive to inclusive, then in the economy:
A) geographical conditions will improve. B) returns to education will decrease. C) returns to entrepreneurship will increase. D) geographical conditions will deteriorate.
If the interest rate were to fall, we expect that
A) the supply of money will fall. B) the supply of money will rise. C) autonomous expenditures will rise. D) the demand for money will fall.
The new classical explanation of aggregate supply is also known as
A) Monetarism. B) Keynesianism. C) the misperception theory. D) the adaptive expectations theory.
Which of the following is a bank liability?
a. cash in the vault b. loans made to customers c. money market deposit accounts d. bank computers e. All of the above are correct.