Diseconomies of scale occur when
a. average fixed costs are falling.
b. average fixed costs are constant.
c. long-run average total costs rise as output increases.
d. long-run average total costs fall as output increases.
c
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
The primary purpose of patents and copyrights is to
A) protect firms from being taken advantage of by competing firms. B) protect domestic firms from foreign competition. C) provide owners with large profit forever. D) encourage the expenditure of funds on research and development to create new products.
If a firm hires 12 workers at $9 per hour each and the 13th worker will be hired only if the wage rate falls to $8 per hour, the marginal wage rate must be
A. -$8. B. $4. C. -$4. D. $8.
It is generally agreed that a major advantage of the competitive price system is the achievement of greater efficiency.
Answer the following statement true (T) or false (F)