Internal scale economies occur when
A. expansion of output by a firm leads to greater specialization of labor.
B. industry growth leads to a greater diffusion of knowledge among firms.
C. expansion in an industry drives down input prices.
D. a firm pays higher input prices to expand production.
Answer: A
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Keynesians and supply-siders both agree that the government can take steps to reduce both the unemployment rate and the inflation rate
Indicate whether the statement is true or false
As a monopolist increases its output, it finds that its total revenue at first increases, and that after some output level is reached, its total revenue begins to decrease.
Answer the following statement true (T) or false (F)
Because we cannot observe or measure utility
A) the predictions of marginal utility theory cannot be verified. B) marginal utility theory is incomplete and so its predictions might not be valid. C) marginal utility theory must be derived from assumptions about demand curves because demand curves can be measured. D) None of the above answers are correct.
Provide an example of each allocation method that illustrates when it works well
What will be an ideal response?