A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct?
A. There are increasing returns to scale
B. The long-run average total cost curve is flat
C. The law of diminishing returns is proven wrong
D. The example is for the short run rather than the long run
B. The long-run average total cost curve is flat
Economics
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In a market for emission permits, firms that emit over their allowed limits
A) are forced to shut down. B) are taxed by the government for the amount of emissions. C) receive a subsidy for the amount of emissions. D) pay a price of these emissions.
Economics
A graph of total fixed cost
a. is a downward sloping line. b. is a straight horizontal line. c. is an upward sloping line. d. has a U-shape.
Economics