In the electricity generation industry, the cost per kilowatt hour of electricity declines as the capacity to generate output increases. This situation represents:
a. a poor opportunity for investors.
b. constant returns to scale.
c. diseconomies of scale.
d. economies of scale.
e. decreasing returns to scale.
d
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A monopolistically competitive firm
a. earns no long-run economic profit and is therefore allocatively efficient b. earns no long-run economic profit and therefore produces at the minimum point of its ATC curve c. earns no long-run economic profit and is allocatively efficient even though it is not producing at the minimum point of its ATC curve d. earns no long-run economic profit, is allocatively inefficient, and does not produce at the minimum point of its ATC curve e. has a chance of making a long-run economic profit and is therefore allocatively inefficient
If the dollar appreciates in value relative to foreign currencies:
A. Aggregate demand decreases because C decreases B. Aggregate demand increases because C increases C. Aggregate demand decreases because net exports decrease D. Aggregate demand increases because net exports increase