If average costs of production decline with increases in output for a particular firm:
a. many small firms will be more efficient than a single large firm.
b. one large producer will be more efficient than many small producers.
c. product diversification is necessary to spread the overhead.
d. diseconomies of scale become significant as output increases.
e. the variable cost of production must exceed the fixed costs.
b
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Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to
a. an increase in the supply of electric cars so that the supply curve shifts rightward. b. an increase in the supply of electric cars so that the supply curve shifts leftward. c. a decrease in the supply of electric cars so that the supply curve shifts rightward. d. a decrease in the supply of electric cars so that the supply curve shifts leftward.
Some employers choose to discriminate as a means of ____ information costs by hiring workers from a similar background as those that were ____ productive in the past
a. increasing; more b. reducing; more c. increasing; less d. reducing; less