A car leasing company that expands its size by buying its competitors may run the risk of increasing production cost per unit due to:
a. diseconomies of scale.
b. economies of scale.
c. diminishing returns.
d. greater use of large-volume purchases.
a
You might also like to view...
The amount of time it takes Congress to debate the size of a tax cut is known as the
A) recognition time lag. B) action time lag. C) effect time lag. D) Ricardian-equivalence time lag.
Typically, the most important determinant of private investment in an economy is
A) the inflow of foreign investment. B) the size of the capital account surplus. C) the size of the current account deficit. D) the outflow of private investment. E) the amount of domestic savings.
The slope of the budget constraint line is:
a. the ratio of the prices (px/py). b. the negative of the ratio of the prices (px/py). c. the ratio of income divided by price of y (I/py). d. none of the above.
In a kinked demand market, whenever one firm decides to lower its price,
a. other firms will automatically follow. b. none of the other firms will follow. c. one half of the firms follow and one half of the firms don't follow the price cut. d. other firms all decide to exit the industry e. all of the other firms raise their prices.