If long-run average cost increases as firm size increases, then the firm is experiencing:
a. diminishing marginal returns.
b. economies of scale.
c. increasing marginal returns.
d. diseconomies of scale.
d
Economics
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Developing countries are damaged by dead capital because
A) it replaces too many workers, creating unemployment. B) resulting inefficiencies greatly reduce the rate of return on investment. C) it must be sold as scrap. D) none of the above.
Economics
The equation for a budget line for goods X and Y, with Px being the price of X, Py being the price of Y, and B being the budget, can be written as:
a. PxX + PyY = B. b. PxX + PyY = 1 / B. c. PxX = B + PyY. d. PxX / PyY = 1 ? B.
Economics