The ability of Nike to spread product development costs over a larger number of units of output arises from:
A. economies of scale.
B. minimum efficient scale.
C. constant returns to scale.
D. diseconomies of scale.
Answer: A
You might also like to view...
What are the three types of unemployment and how do they change over the business cycle?
What will be an ideal response?
In the 1960s, the monetarist school of thought held that
A) monetary and fiscal policy could explain most of the output fluctuations in U.S. history. B) there is a long-run tradeoff between inflation and unemployment. C) efforts to fine-tune the economy are likely to do more harm than good. D) all of the above E) none of the above
Why does entry into markets decrease firm profits?
What will be an ideal response?
If a firm is able to produce ________ output even after reducing its labor workforce, this implies that the firm has excess labor.
A. more B. no C. the same amount of D. less