Refer to the graph shown. The shift from SATC1 to SATC2 reflects:
A. diseconomies of scale.
B. increasing marginal productivity.
C. diminishing marginal productivity.
D. economies of scale.
Answer: D
Economics
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The demand curve for labor is negatively sloped only because the firm must lower its price if it wishes to sell more output
Indicate whether the statement is true or false
Economics
When entry barriers are low, firms in a competitive price-searcher market
a. can expect many new rivals to enter regardless of current profitability. b. can expect competing firms to enter the market if the activity is profitable. c. can never earn economic profit. d. will always be able to earn economic profit.
Economics