Which of the following statements is TRUE?
A) If a firm is experiencing economies of scale, diminishing marginal product has not set in yet.
B) No firm would ever operate at a level of output for which it experiences diseconomies of scale.
C) A firm can experience diminishing marginal product and economies of scale at the same time.
D) Diseconomies of scale is a short-run concept, while economies of scale is a long-run concept.
Answer: C
Economics
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Mainstream economists focus on:
A. cultural and historical aspects of the market. B. the tensions among social classes. C. how the invisible hand achieves equilibrium through the market. D. political restrictions that provide rents to various groups.
Economics