Constant returns to scale are illustrated by
A) a downward sloping long-run average cost curve.
B) a horizontal long-run average cost curve.
C) an upward sloping long-run average cost curve.
D) a long-run average cost curve that is shaped like an upside down U.
Answer: B
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Which of the following is NOT true according to Say's law?
A) Producing goods and services generates the means and the willingness to purchase other goods and services. B) Desired expenditures will always be higher than actual expenditures. C) Supply creates its own demand. D) No overproduction is possible in a market economy in the long run.
When is an individual said to have single-peaked policy preferences?
What will be an ideal response?
Figure 6-5
If the demand curve in Figure 6-5 is unit elastic, then total expenditure at A is ____ total expenditure at B.
A. greater than B. less than C. equal to D. less elastic than
Based on the answer above, the price for iPads _____________ and the quantity demanded for iPads ____________
a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease, decrease