When long-run average costs rise as output increases, the firm is experiencing
A. diseconomies of scale.
B. economies of scale.
C. constant returns to scale.
D. diminishing returns.
Answer: A
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Factors that shift the demand schedule for money include all of the following EXCEPT
A) interest rate paid on money. B) payment technology. C) interest rate paid on non-money assets. D) wealth.
After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to learn that one benefit of being a monopoly was that her company
a. could charge as high a price as desired b. was in a good position to capture the fruits of any innovation c. received increased scrutiny from government regulators d. started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company e. contributed to the deadweight loss in the economy
Suppose Raul has budgeted $100 of his monthly income towards two good: t-shirts and jeans. If the price of a pair of jeans is $20 and last month he spent his $100 on a bundle containing 2 pairs of jeans and 12 t-shirts, which of the following is another point on Raul's budget line?
a. 3 pairs of jeans and 16 t-shirts b. 1 pair of jeans and 15 t-shirts c. 3 pairs of jeans and 6 t-shirts d. 0 pairs of jeans and 20 t-shirts
The regular pattern of income variation over a person's life is called the