Suppose Ford can triple its production of 150s by tripling its production facility for those trucks. This indicates the presence of:

a) the law of diminishing returns.
b) minimum efficient scale.
c) constant returns to scale.
d) diseconomies of scale.
e) economies of scale.

Ans: c) constant returns to scale.

Economics

For the level of output, Q, firm profit is the same whether measured by TR – TC or (AR – AVC) * Q

Indicate whether the statement is true or false

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Economics

In what way are the 12 Federal Reserve Banks considered “quasi-banks”?

What will be an ideal response?

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Economics