A firm whose production function displays increasing returns to scale will have a total cost curve that is:
a. a straight line through the origin.
b. a curve with a positive and continually decreasing slope.
c. a curve with a positive and continually increasing slope.
d. a curve with a negative and continually decreasing slope.
b
You might also like to view...
What is the infant-industry argument for protection from international trade?
A) Domestic firms must be protected until they gain a comparative advantage. B) Any firm necessary in wartime must be protected. C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. D) Domestic jobs must be protected from competition from low-paid foreign workers. E) Foreigners selling products in the economy limit the nation's diversity and stability.
The manager of Happy Chickens, an organic egg producer, should avoid all of the following topics except which one when speaking to managers of Best Eggs, a competitor firm?
A) Happy Chickens' intent to bid on a large government contract to supply eggs to public schools B) forthcoming changes in Happy Chickens' pricing policies C) Happy Chickens' planned production amounts D) a recent medical report documenting the health benefits from eggs
In general, the income effect of an increase in the price of a normal good:
A. will cause the individual to buy more of that good because they have relatively more income. B. will cause the individual to buy less of that good because they have relatively less income. C. will cause the individual to buy more of that good because they have relatively less income. D. will cause the individual to buy less of that good because they have relatively more income.
Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________
A) unemployment rate; 25/100 × 100 B) unemployment rate; 25/75 × 100 C) labor force; 75 D) labor force; 25/100 × 100