When the long-run average total cost curve is increasing, this means that there are
a. economies of scale
b. diseconomies of scale
c. constant returns to scale
d. diminishing returns
e. some fixed factors of production
B
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When the percentage change in quantity demanded is less than the percentage change in price, the demand for the good is ________
A) inelastic B) unit elastic C) perfectly inelastic D) elastic
Assume a two-commodity, two-country world. Then assume that the U.S. has a comparative advantage in the production of computers and Mexico has a comparative advantage in the production of oil. Which of the following statements is true?
A. U.S. consumption of oil will decrease after the introduction of trade. B. U.S. consumption of oil will increase after the introduction of trade. C. Mexico's consumption of oil will decrease after the introduction of trade. D. All of the statements are true.