If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:
A. technological progress has occurred.
B. economies of scale are being realized.
C. the firm is encountering diminishing returns.
D. diseconomies of scale are being encountered.
Answer: B
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A shortage occurs when price is higher than the market equilibrium.
Answer the following statement true (T) or false (F)
Which of the following is NOT a significant cost that a barter system imposes on an economy?
A) Many prices must be maintained for each good. B) Only agricultural goods may be traded. C) Specialization of labor is hindered. D) The costs arising from the problem of finding two people who each want what the other produces.
Economists who are concerned with the effect of fiscal policy on the ability of households and firms to borrow to finance consumption will focus on ________, and economists who want to know whether the government's fiscal policy is sustainable will
focus on ________. A) yearly budget deficits; the federal debt B) the federal debt; yearly budget deficits C) yearly budget deficits; both the federal debt and yearly budget deficits D) the federal debt; both the federal debt and yearly budget deficits
Unemployment rises in ____, and falls in ____
a. peaks; troughs b. booms; recessions c. expansions; contractions d. contractions; expansions