When a firm's long-run average total cost falls as its output increases, the firm is experiencing
A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) decreasing marginal returns.
E) decreasing cost of marginal returns.
A
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Refer to the scenario above. Which of the following is likely to be true if Joe is known to be trustworthy?
A) Multiple equilibria will occur. B) A Nash equilibrium will occur. C) A socially inefficient equilibrium will occur. D) A dominant strategy equilibrium will occur.
When government corrects a market with an externality present by allowing participants to buy up to the point where their net benefit is zero, they must be:
A. imposing a tariff. B. offering a Coase tax. C. mandating a quota. D. imposing a tax.
The IMF uses the quota system to determine how much a country may borrow from the Fund.
a. true b. false
How can an economy achieve full employment without igniting inflation?
What will be an ideal response?