In the above figure, for any output level larger than Q3, this firm experiences
A. economies of scale.
B. decreasing long run average costs.
C. diseconomies of scale.
D. constant economies of scale.
Answer: C
You might also like to view...
Is increased capital spending the only way for an economy to expand its production possibilities frontier?
A. No, an economy can also expand by invention and innovation. B. No, an economy can also grow by investment instead of capital spending. C. Yes, more capital is the only way to expand its production possibilities frontier. D. Yes, although more capital clearly has a high opportunity cost. E. Yes, because capital is the only constraining resource that limits growth.
If future price changes were perfectly anticipated by both borrowers and lenders, then _____
a. the expected real interest rate would be higher than the actual rate b. the expected real interest rate would lower than the actual rate c. the real interest rate in the future would decrease by the amount of the price increase d. the real interest rate in the future would increase by the amount of the price increase e. the real interest rate in the future would remain unchanged
The problem of excess pollution mainly occurs because of
A. asymmetric information. B. a positive externality. C. a monopoly. D. a negative externality.
You have $1 to spend on a vending machine snack. A bag of chips will cost you $1 and the candy bar will also cost you $1. If you choose the bag of chips, the opportunity cost of buying the chips is:
A) $1. B) $1 plus the enjoyment you would have received from the candy bar. C) the enjoyment you would have received from the candy bar. D) $2 minus the enjoyment you received from the bag of chips.