A firm is operating at a scale where diseconomies of scale are present. Which of the following could help explain what that means?
a. The firm is operating at a scale where the average total cost of production is falling as output expands.
b. The firm is operating at a scale where total fixed costs are not minimized
c. The firm is operating at a scale where average total cost is constant as output expands.
d. The firm has grown so large that average total cost increases as output expands.
d
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Answer the following statement(s) true (T) or false (F)
1. When the law of supply holds, an increase in the price of a product will cause producers to increase the quantity they wish to sell. 2. A rise in supply is illustrated by a rightward shift in the supply curve. 3. The supply curve for a commodity will shift downward when an excise tax is imposed. 4. An increase in the price of wheat will cause a rise in the supply of wheat. 5. When the actual market price is below its equilibrium level, suppliers are satisfied but demanders are not.
What role do business firms play in output markets and in factor markets?
What will be an ideal response?
If a corporate bond with face value of $5,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $4 B) $200 C) $1,250 D) $5,000
If two investments, X and Y, have the same expected return an individual investor would prefer:
a. the one with a higher standard deviation. b. the one with a higher mean. c. the one with a lower correlation coefficient. d. the one with a lower variance.