If a company triples its output and its average cost decreases, then the firm is definitely experiencing
A) diseconomies of scale.
B) decreasing marginal returns.
C) increasing marginal returns.
D) economies of scale.
E) Both answers C and D are correct.
D
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The branch of economics that studies the aggregate decisions of all households and all firms is called: a. positive economics
b. normative economics. c. microeconomics. d. macroeconomics.
A firm that charges a very low price would be practicing predatory pricing if
a. the price allowed only a small profit. b. the price would only be profitable if it succeeded in driving a rival out of the market. c. the price allowed profits that were positive but below those earned by other firms. d. it only offered the low price to its rivals' customers.
In what kind of an economy does the government make all the decisions?
What will be an ideal response?
Why are firms in monopolistic competition unable to make an economic profit in the long run?
What will be an ideal response?