Diseconomies of scale tend to occur in large firms because
a. the many layers of management are cumbersome and because it is difficult to monitor employees
b. such firms are operating at inappropriate plant sizes for their output levels
c. such firms are operating at a point above their long-run average total cost curves
d. their ability to adjust their plant sizes is constrained by the existence of fixed inputs
e. they fail to garner all the possible gains from specialization
A
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What effect did the decrease in the value of the dollar have on the U.S. trade deficit in the period from 2006 to 2009?
A. It decreased the trade deficit as Americans bought more U.S. capital goods. B. It decreased the trade deficit as foreigners were attracted to the increased value of U.S. products and Americans bought fewer imports. C. It increased the trade deficit as U.S. investors bought more domestic financial assets. D. It increased the trade deficit as Americans bought more imports and foreigners bought fewer U.S. products.
From an economists' perspective, which of the following observations is not true? a. Self-interest is purely monetary in nature
b. Self-interest can include benevolence. c. Self-interest is a good predictor of human behavior in most situations. d. Self-interest is not the same as selfishness.
A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market prices to allocate goods and resources is often called
a. national socialism. b. the welfare state. c. a corporate economy. d. capitalism.
Large minimum efficient scale of plant combined with limited market demand may lead to:
A. natural monopoly. B. patent monopoly. C. government franchise monopoly. D. shared monopoly.