When a product transformation curve is bowed outward, there are ________ in production
A) economies of scope
B) economies of scale
C) diseconomies of scope
D) diseconomies of scale
E) none of the above
A
You might also like to view...
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. If Bev were to produce no bags, which of the following is true regarding Bev's costs?
A. The variable cost of fabric would drop to zero. B. The fixed cost of thread would stay the same. C. The variable cost of cutting shears would drop to zero. D. All of these are true.
When the marginal cost of a price-taking firm is less than the market price of its product, the firm should:
a. expand output (provided that price is not less than average variable cost). b. reduce output (provided that price is not less than average variable cost). c. maintain output (provided that price is not less than average variable cost). d. charge more than the market price.
It may be unrealistic to assume that consumer tastes are the same across nations and invariant with respect to income:
A. so it is not one of the HO assumptions. B. but it is an HO assumption because it enables the analysis to focus on other issues that drive trade and prices. C. but it actually is true so it is an HO assumption. D. and it is not an HO assumption because consumer tastes within a nation are not relevant to international trade.
When the actual unemployment rate is greater than the natural rate of unemployment, the inflation rate
A. tends to increase. B. tends to decrease. C. falls to zero. D. remains unchanged.