A firm is operating at a scale where diseconomies of scale are present. Which of the following could help explain what that means?
a. The firm is operating at a scale where the average total cost of production is falling as output expands.
b. The firm is operating at a scale where total fixed costs are not minimized
c. The firm is operating at a scale where average total cost is constant as output expands.
d. The firm has grown so large that average total cost increases as output expands.
d
Economics
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Which of the following would tend to increase the wage of coal miners?
a. new environmental laws that make it more costly for firms to use coal in their production process b. an increase in the price of oil, a substitute for coal c. a decrease in the demand for coal d. an increase in the supply of coal miners
Economics
What is the principal-agent problem?
What will be an ideal response?
Economics