If long run average costs fall with output, you have
a. Increasing returns to scale
b. Decreasing returns to scale
c. Constant returns to scale
d. None of the above
a
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A newly industrialized country is a. the same as a high-income country. b. any country that has experienced sustained growth in industry. c. a special classification given to some upper-middle income countries that have achieved relatively advanced manufacturing sectors
d. any country that has moved out of lower income status.
To affect the market outcome, a price ceiling
A) must be set below the black market price. B) must be set below the legal price. C) must be set below the price floor. D) must be set below the equilibrium price.
As the period for firms to expand output is lengthened, the elasticity of the market supply curve will:
a. approach zero. b. increase. c. decrease. d. remain the same since time does not affect the elasticity of market supply.
A cartel is a group of firms that attempt to collude by coordinating price and output decisions
a. True b. False Indicate whether the statement is true or false