Increasing returns to size can be:
A) Observed as the firm approaches the inelastic portion of its marginal cost curve.
B) Seen as the long run average cost curve turns up.
C) Ensures that it is profitable to expand irrespective of product price.
D) None of the above
Answer: D
Economics
You might also like to view...
Which of the following is included in the category of corporate profits when measuring GDP?
I. Profits paid as dividends. II. Undistributed profits. III. Income received by owners and operators of businesses. A) I only B) I and II C) I and III D) I, II and III
Economics
In the equilibrium version of the classical model, the velocity of money
a. depends on the real rate of interest. b. depends on the level of employment. c. is equal to the Cambridge k. d. is stable in the short run.
Economics