If a firm is experiencing diseconomies of scale, then
A. proportional increases in all inputs result in proportional increases in output.
B. the firm should expand the size of its operation.
C. the long-run average cost curve is decreasing as output expands.
D. the long-run average cost curve is rising as output expands.
Answer: D
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Why are perfectly competitive ranchers in Montana price takers?
What will be an ideal response?
The Fed increases the money supply by buying securities for $300 million. The impact of this increase, in the long-run, would be to
A. raise the average price level and increase the level of real GDP. B. raise the average price level, but real GDP (output) would stay the same. C. raise the real supply of loanable funds, lower the interest rate, and increase the demand for output. D. raise the real supply and demand for loanable funds with an increase in the interest rate.
Other things equal, the supply of labor will be higher to a job that
a. offers less prestige b. offers fewer nonmonetary rewards c. provides little on-the-job training d. requires advanced education or skills e. provides a climate-controlled work environment
An example of a public good is
A. a grocery store. B. a ticket to a baseball game. C. a hardwood forest in a national park. D. an orange grove.