When there are diseconomies of scale in production:
a. long-run average total cost declines as output expands.
b. long-run average total cost increases as output expands.
c. average fixed cost increases as output expands
d. marginal cost decreases as output expands.
b
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Suppose Sarah owns a small company that makes wedding cakes. The table below shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number ofCakes Per DayTotal CostPer Day0$1001$1802$2203$3004$4005$5206$660If the market for wedding cakes is perfectly competitive, and wedding cakes sell for $125 each, then at her profit-maximizing level of output, Sarah's profit will be ________ per day.
A. $90 B. $625 C. $105 D. $100
Moral hazard is due to
A) hidden characteristics. B) hidden actions. C) symmetric information. D) adverse selection.
Which of the following is a government-inhibited good?
A) tobacco B) red wine C) public education D) cocaine
Microeconomics studies
A. the changes in economic theory brought about by changes in the nationwide economy. B. how changes in the nation's birth rate affect its labor force. C. how changes in the money supply affect how much households consume. D. decisions made by individual consumers and firms.