Diseconomies of scale occur mainly because:
A. Of the law of diminishing returns
B. Firms in an industry must be relatively large in order to use the most efficient production techniques
C. Of the inherent difficulties involved in managing and coordinating a large business enterprise
D. The short-run average total cost curve rises when marginal product is greater than average total cost
C. Of the inherent difficulties involved in managing and coordinating a large business enterprise
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When a tax is imposed on a good or service, the
A) revenue gained by the government is the excess burden. B) deadweight loss that arises from a tax is the excess burden. C) share of the tax paid by the buyer is the excess burden. D) share of the tax paid by the seller is the excess burden. E) amount the government collects as tax revenue is the deadweight loss from the tax.
Does Mr. McConaughey's marginal utility from spending time with family and friends and from breaking a sweat obey the principle of diminishing marginal utility?
A) No, neither obeys the principle of diminishing marginal utility. B) Only breaking a sweat obeys the principle of diminishing marginal utility. C) Yes, they both obey the principle of diminishing marginal utility. D) Only spending time with friends and family obeys the principle of diminishing marginal utility.