Multiple Choice
A cost function has economies of scale if
A) average fixed costs fall as production increases.
B) total costs fall as production increases.
C) the average total cost falls as production increases.
D) it is less expensive to produce goods jointly rather than separately.
Correct Answer:
Verified
Correct Answer:
Verified
Q25: Suppose that capital and labor must be
Q30: If the cost of labor decreases, the
Q31: One problem with measuring a durable good's
Q33: If a firm buys a specialized metal
Q35: If producing more output increases average cost
Q83: A firm's cost curve is determined by<br>A)
Q88: The production of cigarettes is highly automated;
Q89: Suppose capital and labor are perfect substitutes
Q107: Explain how a firm can have constant
Q108: A consumer purchases a book by driving