To determine whether a firm is experiencing economies of scale, diseconomies of scale, or constant returns to scale, one would examine the _____ relationship between _____.
A) short run; the quantity of input and the average variable cost
B) short run; the quantity of output and the average total cost
C) long run; the quantity of input and the average variable cost
D) long run; the quantity of output and average total cost
Correct Answer:
Verified
Q142: When a firm can achieve economies of
Q143: A long-run ATC curve shows:
A)the minimum average
Q144: In the long run, when average total
Q145: In the long run, when an increase
Q146: When a firm is on the portion
Q147: In the short run:
A)a firm cannot increase
Q148: Which of the following could be true
Q150: Constant returns to scale occur when:
A)an increase
Q151: Economies of scale occur when:
A)an increase in
Q152: In the long run, when an increase
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