The above figure shows the isoquants for producing steel. When producing between 10,000 and 20,000 tons there are
A) increasing returns to scale.
B) decreasing returns to scale.
C) constant returns to scale.
D) economies of scale.
C
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The concept of a market is a
A. place where sellers increase their wealth. B. store. C. location where buyers and sellers meet to negotiate prices and determine quantities traded. D. group of buyers and sellers of a good or service.
The largest component of federal government spending is for
A) Medicare and Medicaid. B) interest on the national debt. C) prisons. D) national defense. E) education.
The Fed conducts an open market sale of Treasury bills of $5 million. If the required reserve ratio is 0.20, what change in the money supply can be expected using the oversimplified money multiplier?
a. $25 million b. $5 million c. 0 d. ?$5 million e. ?$25 million
Deadweight loss
a. measures monopoly inefficiency. b. exceeds monopoly profits. c. equals monopoly profits. d. equals monopoly revenues minus profits.