Which of the following statements is TRUE?
A) If a firm is experiencing economies of scale, diminishing marginal product has not set in yet.
B) No firm would ever operate at a level of output for which it experiences diseconomies of scale.
C) A firm can experience diminishing marginal product and economies of scale at the same time.
D) Diseconomies of scale is a short-run concept, while economies of scale is a long-run concept.
Answer: C
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Recently, the level of GDP has declined by $60 billion in an economy where the marginal propensity to consume is 0.75. Aggregate expenditures must have fallen by
A. $15 billion. B. $30 billion. C. $45 billion. D. $60 billion.
The minimum wage may cause businesses to hire fewer workers, and this results in structural unemployment
Indicate whether the statement is true or false
Last week, six Swedish kronor could purchase one U.S. dollar. This week, it takes eight Swedish kronor to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S
aggregate demand. A) increase; decrease B) decrease; increase C) decrease; decrease D) increase; increase
From the standpoint of economic efficiency, competitive markets provide:
a. less of a public good than would be efficient. b. more of a public good than would be efficient. c. exactly the amount of a public good that is efficient. d. none of these.