Which of the following situations depicts diseconomies of scale?
A) The average total cost of a firm increases from $50 to $55 when it increases its production from 10 units to 20 units.
B) The average total cost of a firm decreases from $50 to $40 when it increases its production from 10 units to 20 units.
C) The average total cost of a firm remains at $50 when it increases its production from 10 units to 20 units.
D) The average total cost of a firm remains at $50 when it decreases its production from 20 units to 10 units.
A
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If the labor force consists of 1,000 people and and the unemployment rate is 7%, then 930 people must be considered employed
Indicate whether the statement is true or false
The assumptions of the Production Possibilities Frontier Model include:
a. Output is limited to just two broad classes of products: consumer goods and capital goods. b. The time period is any time period of any length. c. Society's knowledge changes each year. d. Rules of the game are allowed to change.