Which of the following statements explains increasing returns to scale?
a. A larger firm can produce at a higher average total cost than a smaller firm.
b. A larger firm can produce at a lower average total cost than a smaller firm
c. A larger corporation has lower opportunity costs than a smaller corporation.
d. The cost of production for each unit of good in a small firm always increases as output increases.
b
Economics
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Supply curves for secondary supply resources (e.g., scrap metal) become:
A) Steeper in the short run B) More elastic in the long run C) Steeper in the long run D) More inelastic in the short run
Economics
In the above figure, what happens to the firm's optimal level of output if the price it receives for its product decreases from P4 to P3?
A) Output stays the same. B) Output decreases. C) Output increases. D) There is not enough information provided to know what happens to output.
Economics