When there are increasing returns to scale, average costs must be:
a. falling.
b. rising.
c. constant.
d. falling, then rising.
Answer: a. falling.
Economics
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All of the following are criticisms of the Lorenz curve EXCEPT
A) The Lorenz curve does not include in-kind transfers. B) The Lorenz curve does not account for age differences. C) The Lorenz curve does not account for differences in the sizes of families. D) The Lorenz curve does not account for differences in education levels.
Economics
When a government reduces its deficits by increasing taxes, in the short run,
A) output returns to potential. B) output increases. C) interest rate is higher. D) IS curve shifts inward to the left.
Economics