Economies of scale exist when:
A. the average cost of production falls as output rises.
B. firms become larger.
C. doubling all the inputs leads to less than double the output.
D. input prices are falling.
Answer: A
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When the U.S. Treasury sells gold, the immediate effect is that __________ and __________
A) reserves increase; currency in circulation decreases B) reserves decrease; currency in circulation increases C) reserves increase; Treasury deposits decrease D) reserves decrease; Treasury deposits increase
Full employment means which of the following is zero?
a. structural unemployment b. cyclical unemployment c. frictional unemployment d. aggregate unemployment
Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase. b. shortage to exist and the market price of roses to decrease. c. surplus to exist and the market price of roses to increase. d. surplus to exist and the market price of roses to decrease.
How does the use of money differ from the use of barter in the exchange of goods and services?
Please provide the best answer for the statement.