Refer to the graph shown. The output range in region c is associated with:
A. constant returns to scale.
B. diminishing marginal productivity.
C. economies of scale.
D. diseconomies of scale.
Answer: D
You might also like to view...
Refer to the payoff matrix below. If Best Lights and Bright Lights both know that the above game will be played exactly four times, which of the following will be the outcome of the game in each of the four periods?
A) Set High Price/Set High Price
B) Set Low Price/Set High Price
C) Set High Price/Set Low Price
D) Set Low Price/Set Low Price
Refer to the graph below.
As you move from point A to point B:
A. production efficiency is decreased because we are no longer on the production possibility curve. B. production efficiency is decreased because we have less of good Y. C. the change in efficiency is unclear. D. production efficiency is increased because we have more of good X.