If in some range of production, average cost is falling, 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: A
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Explain the term "labor hoarding."
What will be an ideal response?
George purchased a $10,000 bond that pays a nominal interest rate of 8 percent per year. George's marginal income tax rate is 28 percent. Over the last year, inflation was 3 percent
Find George's before-tax real interest rate and his after-tax real interest rate.
Assume that supply increases slightly and demand increases greatly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.
During the period between 1960 and 1968 the poverty rate _______.
Fill in the blank(s) with the appropriate word(s).