If a firm can double output by doubling the size of its operation, it is subject to
a. economies of scale
b. diseconomies of scale
c. constant returns to scale
d. increasing returns to scale
e. diminishing returns to scale
C
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A technology shock could have a different impact than a natural catastrophe because ________
A) the former would likely lower TFP and the latter raise labor productivity B) the former would likely lower output and the latter raise production C) the former would likely raise output and the latter would raise TFP D) the former would likely lower labor productivity and the latter would lower TFP E) the former would likely raise TFP and the latter would curtail production
Variable costs are
a. costs that vary with output b. equal marginal costs c. not considered in decision-making d. equal to total costs
The idea that people change their behavior in response to taxes is
A. highly controversial among economists. B. accepted by economists, but debated by those in Congress. C. uncontroversial among economists. D. None of these statements is true.
Monetary policy is more effective when:
A. the exchange rate is fixed. B. the exchange rate is floating. C. it is contractionary. D. it is expansionary.