When long-run average cost increases as output increases there are
A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) none of the above.
B
Economics
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The wealth effect on consumer spending is
A) about the same as the effect on plant and equipment expenditure. B) about the same as the effect on residential construction. C) less than the effect on plant and equipment expenditure. D) larger than the effect on residential construction.
Economics
Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A) a lower price. B) a lower average cost. C) a horizontal demand function. D) a lower rate of output.
Economics