The production of cigarettes is highly automated; however, a worker is required to monitor each machine. Machines and workers do not interact with one another. Given this information, there are most likely
A) economies of scale.
B) economies of scope.
C) constant returns to scale.
D) increasing returns to scale.
C
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Which household characteristic has the largest effect on household income distribution?
A) the size of the household B) the age of householders C) the race of household members D) the level of educational attainment of household members
Which of the following statements is INCORRECT?
a. The MSC includes the market-level marginal abatement cost and the government’s cost of enforcement b. If the MSC function is known, total social costs at a given abatement level are found as an area under the MSC c. If the TSC function is known, the marginal social cost of a given abatement level is equal to an area under the TSC d. The MSC of environmental quality is captured by the supply of environmental quality