Economies of scale exist when:
A. input prices are falling.
B. the average cost of production falls as output rises.
C. doubling all the inputs leads to less than double the output.
D. firms become larger.
Answer: B
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Refer to the table above. Laborland's net payment to foreigners equals ________
A) -$23 billion B) $20 billion C) -$61 billion D) $23 billion
When private ownership rights are well-defined and enforced, owners of physical assets and resources will have an incentive to do which of the following?
What will be an ideal response?
In which of the following cases does an import quota result in a higher welfare loss than a tariff?
A. The quota licenses are allocated through resource-using application procedures. B. The government auctions the import licenses to the highest bidders. C. The domestic industry in the importing country is highly competitive. D. The domestic firms producing an import-competing product set the product's price equal to the marginal cost of producing it.
If the nominal money supply doubles while real money demand is unchanged, what happens to the price level?
A. The price level is unchanged. B. The price level falls by one-half. C. The price level doubles. D. The price level increases by a factor of four.