When economies of scale exist,
a. production costs per unit increase as output expands.
b. production costs per unit decline as output expands.
c. total production costs decrease.
d. total production costs increase.
b
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The additional cost resulting from a small increase in some activity is called the
A) marginal cost. B) diminishing returns of the activity. C) opportunity cost. D) marginal benefit.
Which one of the following statements is TRUE for Norway, a non-euro country?
A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. B) Even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows. C) Owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. D) Even owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is closed to capital flows. E) Only owners of capital that can be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows.