One reason for diseconomies of scale is that, at very large scales, management systems can become
A) more efficient because they can effectively manage more workers.
B) increasingly complex and inefficient.
C) more numerous than the workers they manage.
D) none of the above.
B
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Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii B. i and ii C. Only iii D. i and iii E. Only i
Which of the following statements is false?
A) The difference between average total cost and average fixed cost is average variable cost. B) The marginal cost curve intersects the average variable cost curve and the average total cost curve at their minimum points. C) Firms often refer to the process of lowering average fixed cost as "spreading the overhead." D) When marginal cost equals average total cost, average total cost is at its highest value.
The monopolist, like the perfect competitor, maximizes profits at the output where marginal revenue equals marginal cost
a. True b. False Indicate whether the statement is true or false
The PE ratio is determined by dividing the earnings per share by the current market price of the stock
a. True b. False Indicate whether the statement is true or false