If a country experiences economies of scale in the production of a good, it implies that ______________
Fill in the blank(s) with the appropriate word(s).
Answer: the long-run average cost of production falls as the scale of operation expands.
You might also like to view...
A buyer is said to be a price taker if she:
A) can bargain over the prices of the goods she consumes. B) can purchase any amount of a good at a fixed price provided she has the money to pay for it. C) always pays less than the market-determined price for the goods she is consuming. D) ignores the prices of related goods and considers only the price of the goods she is purchasing.
La Dila Corp . decided to sponsor an AIDS awareness campaign when it discovered that its rival had been sponsoring several fund-raising events for AIDS-afflicted children. This is an example of ________
A) bounded rationality B) pure altruism C) impure altruism D) consumerism
Which of the following is NOT an asset of the Federal Reserve?
A) currency B) government securities C) mortgage-backed securities D) None of the above are correct because they are all assets of the Federal Reserve.
The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the efficient quantity of doughnuts to produce each day?
A) 100 dozen B) 200 dozen C) 300 dozen D) 500 dozen