Economies of scale imply: (i) a continuously falling AC curve; (ii) a larger output is more efficient than a smaller output
a. i and ii
b. i but not ii
c. ii but not i
d. neither i nor ii
a
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In the market for euros, if the current exchange rate is below the equilibrium rate,
a. the quantity supplied and the quantity demanded for euros are equal. b. there is an excess supply of euros and the exchange rate will fall. c. there is an excess demand for euros and the exchange rate will rise. d. the exchange rate will neither rise nor fall. e. there is an excess demand for euros and the exchange rate will fall.
Discrepancies in profitability tempt rivals to charge the more profitable consumers somewhat lower prices in order to lure them away from the firm that is "overcharging" them. This practice is referred to as
a. collusion. b. price dealing. c. skimming. d. market penetration.