Reductions in minimum average costs that come about through increases in the size of plants and equipment are called
A. Barriers to entry.
B. Diseconomies of entry.
C. Economies of scale.
D. Economies to monopoly power.
Answer: C
You might also like to view...
When at least one productive resource is fixed, the firm is producing
a. in the short run. b. in the long run. c. only one type of product. d. at least two products.
The presence of adverse selection in a market causes:
A. some transactions to fail to take place. B. a deadweight loss. C. market failure. D. All of these statements are true.
Technological advances shift the supply curve rightward
a. True b. False Indicate whether the statement is true or false
To answer, refer to the following: "At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987). Five years before, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal). Holding all else equal, we can conclude that, over those years,
A. Huffy's marginal cost decreased. B. Huffy's marginal cost increased. C. Huffy's average variable cost increased. D. Huffy's average variable cost decreased. E. both a and c