Economies of scale exist where the long-run average cost curve is
A) horizontal.
B) downward sloping.
C) upward sloping.
D) tangent to the marginal cost curve.
Answer: B
Economics
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A direct implication of the special interest theory of government is that _____
a. political pressure from special interests pushes government to expand b. special interests get whatever they want c. special interests do not get what they want under Incrementalism d. the general public general can apply more pressure than special interests and thus will move the budget in drastic ways, depending upon public sentiment
Economics
If increasing returns to scale are present, the long-run average cost increases as more output is produced
Indicate whether the statement is true or false
Economics