A firm doubled all its inputs and experienced a 50% increase in output. If all input prices remain unchanged, the firm's long-run average cost exhibits:
A. economies of scale at the current output level.
B. diseconomies of scale at the current output level.
C. a constant long-run average cost at the current output level.
D. diminishing marginal returns at the current output level.
Answer: B
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In comparing the views of economists on stabilization policy in the 1960s with the current views of economists on stabilization policy, one can say
A) few economists in the 1960s favored stabilization policy, while most economists currently favor stabilization policy. B) economists' views on stabilization policy have changed very little since the 1960s. C) fewer economists currently believe it is possible to use stabilization policy to fine-tune the economy than in the 1960s. D) almost no economists in the currently believe stabilization policy should be used.
Refer to the above figure. Suppose there are L4 workers in the union, and the union wants all of its workers to have a job. It will set the wage rate at
A) W1. B) W2. C) W3. D) W4.
The enclosure movement in England in the 17th century represented an attempt to transform
a. a public good into a private good. b. a private good into a public good. c. a private good into a common resource. d. a common resource into a private good.
A Herfindahl index of 10,000 suggests:
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.