If unit costs decrease as the quantity of production increases and all inputs are variable, then a firm is experiencing
A) constant returns to scale.
B) economies of scale.
C) diseconomies of scale.
D) falling economies of scope.
B
You might also like to view...
Which policy measure increases the punishment for white-collar crime and obstruction of official investigations?
A) Sarbanes-Oxley Act of 2002 B) Global Legal Settlement of 2002 C) Gramm-Leach-Bliley Act of 1999 D) Riegle-Neal Act of 1994
A disadvantage of functional finance is that it: a. does not focus on producing the potential level of output in an economy
b. increases the level of unemployment during recessions. c. allows chronic deficits that magnify into national debt, allowing it to reach an alarming level. d. requires that the budget is balanced even during times of war. e. magnifies fluctuations in the business cycle.