When a firm is experiencing diseconomies of scale:
A. It should increase the amount of labor it hires
B. It should lower its price to the competitive level
C. Its average total costs will decline if it reduces its scale of operations
D. It should increase the size of its plant to decrease its average total costs
C. Its average total costs will decline if it reduces its scale of operations
You might also like to view...
The SMarT program is designed to overcome which common barrier to saving?
A. Status-quo bias B. An unwillingness to forgo current consumption C. The program was designed to overcome both A and B. D. The program was designed to overcome neither A nor B.
Which of the following represents key strengths of the market economy as a system of allocation? a. Goods and services are allocated based on willingness and ability to pay,rather than based on need
b. Producers have strong incentives to innovate because successful innovatorsare rewarded with higher profit. c. Since price is freely set based on supply and demand, shortages and surplusesare minimized. d. All of the answers above are correct.
Thanks to randomized controlled trials, policymakers and program managers can:
A. more confidently channel resources to approaches that work. B. more confidently channel resources to approaches that are cost effective. C. have at least some evidence that the programs chosen are better than others. D. All of these statements are true.
Which of the following are characteristics of a linear demand curve?
A. It has a constant slope. B. It has a constant elasticity of demand. C. The upper half of the liner demand curve is inelastic. D. All of these