Economies of scale exist when
a. long-run average costs decline as output increases.
b. long-run average costs are constant.
c. long-run average costs increase as output increases.
d. short-run average costs decline.
e. short-run average costs increase.
A
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Suppose that two soft drink manufacturers, Fizzy Pop and Spritzy Soda, agree to charge the same prices for their soft drinks. This practice is
A) always legal under the antitrust laws. B) legal as long as Herfindahl-Hirschman index is less than 1,000. C) legal as long as the firms had a cost justification for setting prices. D) always illegal under the antitrust laws.
Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will increase. B) GDP will decrease. C) GDP will not change. D) GDP may increase or may decrease depending on inflation.
Some grocery stores are now offering customers coupons which entitle them to a discount on certain items on their next visit when they go through the check-out line. This practice is an example of:
A) intertemporal price discrimination. B) third-degree price discrimination. C) a two-part tariff. D) bundling. E) none of the above
Each step up the education ladder improves the incomes of white males but not of black males
Indicate whether the statement is true or false