A new domestic industry with potential economies of scale is called an infant industry.

Refer to Figure 11-11. For output rates greater than 20,000 picture frames per month

A) the firm will not make a profit because the average cost of production will be too high. B) the firm will experience diminishing returns. C) the short-run average total cost will equal the long-run average total cost of production. D) the firm will experience diseconomies of scale.

Peter's Pizzeria sells both pizzas and wings. It wants to increase the sales of its pizzas. If it decides to increase the price of the wings, it is assuming that

a. the pizza and the wings are substitutes b. the pizza and the wings are complements c. the pizza and the wings are unrelated in demands d. it cannot increase the sales of its pizzas