If the average total cost of producing 20 sweaters an hour falls when the firm doubles all its inputs, then the
A) short-run average total cost curve shifts upward because all inputs have increased.
B) firm moves along its short-run average total cost curve.
C) firm experiences economies of scale.
D) long-run average cost curve shifts downward.
C
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According to Garrett Hardin's view of The Tragedy of the Commons:
a. Externalities will be internalized by the market. b. Individuals will use the commons up to the point where marginal benefits equal marginal social costs. c. Individuals will create institutions to prevent the collapse of the commons. d. Individual will use the commons beyond the socially efficient point.
Bigness, or large firms, may benefit consumers in which of the following ways?
A. Larger firms usually charge lower prices than smaller firms. B. Larger firms with monopoly power definitely have greater incentive to be efficient and innovative. C. Larger firms may take advantage of economies of scale and scope. D. Larger firms are more responsive to consumers’ desires.