If long-run costs are plotted on the vertical axis and the quantity of output is plotted on the horizontal axis, a line that is perfectly horizontal implies:
a. constant returns to scale.
b. economies of scale.
c. diseconomies of scale.
d. inefficient use of capital.
e. inefficient use of labor.
a
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In perfectly competitive markets, products are ______ and sellers are ______.
a. homogeneous; price takers b. homogeneous; price searchers c. substantially different; price takers d. substantially different; price searchers
Government regulations requiring firms that desire to sell securities in financial markets to disclose all available information
A) eliminate the adverse selection problem (when rigorously enforced). B) increase the difficulty that young firms may have in raising funds. C) eliminate the moral hazard problem in securities markets. D) fail to eliminate the adverse selection problem, in part because they do not greatly reduce the difficulty that young firms have in raising funds.