Foundations of Economics - With MyEconLab
8th Edition
ISBN: 9780134641720
Author: BADE
Publisher: PEARSON
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Question
Chapter 14, Problem 8SPPA
To determine
Why Gap is closing its stores. Is it a long run decision or short run decision? Is it taking benefit of economies of scale?
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Multiple choice questions - Microeconomics
35) What is the firm’s efficient scale?
A. the quantity of output that minimizes average total cost
B. the quantity of output that minimizes average variable cost
C. the quantity of output that minimizes marginal cost
D. the quantity of output that minimizes average fixed cost
34) Marginal cost increases as the quantity of output increases. What property does this reflect?
A. diminishing total cost
B. increasing marginal product
C. increasing total cost
D. diminishing marginal product
Chapter 14 Solutions
Foundations of Economics - With MyEconLab
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Similar questions
- Would you consider an interest payment on a loan to a film an explicit or implicit cost?arrow_forwardIt is clear that businesses operate in the short run, but do they ever operate in the long run? Discuss.arrow_forwardDo you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?arrow_forward
- What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?arrow_forwardWhat shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?arrow_forwardHow do we calculate each of the following: marginal cost, average total cost, and average variable cost?arrow_forward
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