The negatively-sloped part of the long-run average total cost curve is due to which of the following?
A) Diseconomies of scale.
B) Diminishing returns.
C) The difficulties encountered in coordinating the many activities of a large firm.
D) The increase in productivity that results from specialization.
D
Economics
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The market demand for labor will be
A) insensitive to the wage rate in the short run. B) downward sloping. C) the inverse of the market demand for output. D) perfectly inelastic.
Economics
Answer the following questions true (T) or false (F)
1. If a firm is experiencing diseconomies of scale, its long-run average cost curve is increasing. 2. A U-shaped long-run average cost curve implies that a firm experiences economies of scale at low levels of production and diseconomies of scale at high levels of production.
Economics