The main source of economies of scale is
A) better management.
B) constant returns to plant size.
C) specialization.
D) long-run cost curves eventually sloping downward.
E) increases in the labor force not matched by increases in the plant size.
C
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Which of the following decreases the demand for loanable funds and shifts the demand for loanable funds curve leftward?
A) The real interest rate rises. B) The economy experiences a recession. C) Wealth decreases. D) Technology that increases productivity is introduced. E) An economy experiences a rapid increase in population.
In the one-input model of production, increasing marginal product implies non-convexity of the producer choice set.
Answer the following statement true (T) or false (F)
Ways to "game" the budgeting process include
a. delaying sales if just short of a target b. accelerating expenses if just short of a target c. delaying sales once a target is met d. delaying expenses costs once a target is met
In the long run, the movement of firms into and out of a perfectly competitive market will influence price by
a. shifting the market demand curve b. shifting the market supply curve c. making the market supply curve less elastic d. making the market demand curve less elastic e. shifting the supply curve for each firm in the market