When a firm experiences declining long-run average total costs as it produces more output, there are
A) increasing marginal returns to variable inputs.
B) economies of scale.
C) diseconomies of scale.
D) constant returns to scale.
B
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As a whole, nations are better off after trade and specialization because
A) nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve. B) nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve. C) nations experience an inward shift of their production possibilities curve. D) nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve.
A used car was recently priced at $20,000.00. Seeing the car, Bobby thought, "It's nice, but if I have to pay more than $19,500 for this car, then I would rather do without it." After negotiations, Bobby purchased the car for $19,250.00
His consumer surplus was equal to A) $19,500.00. B) $1,750.00. C) $250.00. D) $0.00.
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 sword in Morocco?
A) 1/2 of a belt B) 1 belt C) 1.5 belts D) 2 belts
Government agencies often regulate the price natural monopolies charge because, if left unregulated, natural monopolies will:
A. charge a price greater than average cost. B. charge a price less than average cost. C. charge a price equal to average cost. D. face too many competitors.