If in some production range average cost is rising, the firm is experiencing
A. increasing returns to scale.
B. decreasing returns to scale.
C. constant returns to scale.
D. increasing costs per unit of output.
Answer: B
You might also like to view...
The table above gives information about the labor market in Lantis, a community in which the labor market is perfectly competitive. The equilibrium wage rate is ________ an hour and the quantity of labor employed is ________ hours per day
A) $5; 600 B) $25; 200 C) $15; 400 D) None of the above answers is correct.
When the Fed buys U.S. government securities from a bank, that bank's excess reserves and total reserves increase, but there is no change in required reserves
a. True b. False Indicate whether the statement is true or false
Which of the following acts prohibits directors of one company from sitting on the board of a competitor?
a. Sherman Act b. Federal Trade Commission Act c. Robinson-Patman Act d. Clayton Act
Suppose that in a month the price of pizza increases from $4 to $5. At the same time, the quantity of pizzas demanded decreases from 200 to 190. The price elasticity of demand for pizza (calculated using the midpoint formula) is:
A. 0.1. B. 0.23. C. 0.25. D. 4.35.