If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect.
b. long-run average costs must be decreasing.
c. the firm is experiencing diseconomies of scale.
d. the firm should increase production.
e. the firm is experiencing constant returns to scale.
C
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What is the role of nongovernmental organizations in promoting labor standards?
a. They have no enforcement power, but they can investigate and bring attention to and put pressure on firms, governments, and other groups to effect change. b. Because they are nongovernmental, they have no power. c. They can change laws for labor in many situations. d. Because they are part of the United Nations, they often report their findings and cause major policy changes.
Which of the following is an economic investment?
A. Shares of corporate stock. B. U.S. savings bonds. C. Newly built houses. D. Bonds issued by private corporations.