Economies of scale involve a reduction in minimum average costs as a result of an increase in the size of plants and equipment.
Answer the following statement true (T) or false (F)
True
Economies of scale occur when a firm increases efficiency by investing in a larger plant or more equipment.
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If the growth rates of nominal GDP and real GDP in an economy are 6% and 2% respectively, the inflation rate in the economy must be:
A) 2%. B) 8%. C) 4%. D) 3%.
In the above figure, what is the amount of the tax per compact disc?
A) $10 B) $20 C) $30 D) $40
What is true at the profit-maximizing quantity for a nondiscriminating monopolist but not true of a perfectly competitive firm?
a. Price equals marginal cost. b. Price is greater than marginal cost. c. Marginal revenue equals marginal cost. d. Marginal revenue is less than marginal cost. e. Marginal revenue is greater than average revenue.
When Harlan County, Kentucky, has a monopsony coal mining firm,
a. d and e. b. workers will work for the firm that pays the higher wage. c. coal buyers will continue to buy coal from other counties. d. coal miners will only have one employer. e. wages will be determined only by the demand for labor.