A firm whose production function displays increasing returns to scale will have a total cost curve that is
a. a straight line through the origin.
b. a curve with a positive and continually decreasing slope.
c. a curve with a positive and continually increasing slope.
d. a curve with a negative and continually decreasing slope.
b
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A firm's labor demand curve is also its marginal revenue product curve. For both the perfectly competitive firm and the output price maker, the labor demand curve slopes downwards
However, there is a difference in the reasons why the labor demand curve slopes downwards. What is this difference?
Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds?
a. U.S. Government bonds b. municipal bonds c. common stock d. commercial paper e. none of the above
When a competitive price-searcher market is in long-run equilibrium, the firms will
a. earn economic profit. b. operate at an output level that minimizes long-run average total cost. c. charge a price that is equal to average total cost. d. operate at an output level where price is equal to marginal cost.
Common property is
A. an externality. B. any resource that is free for the user. C. a social cost. D. property that is owned by everyone and therefore by no one.