Which of the following is not a reason why firms experience economies of scale?
A) Workers and managers can become more specialized, enabling them to be more productive.
B) As output increases, the managers can begin to have difficulty coordinating the operations of their firms.
C) Technology can make it possible to increase production with a smaller increase in at least one input.
D) Larger firms may be able to purchase inputs at lower costs than smaller competitors.
Question 2
Refer to Figure 10-3. Best friends Laurel and Hardy, both enjoy watching romantic comedies and science fiction movies. Based on the diagrams above what can you conclude about their movie preferences?
A) They have identical movie preferences.
B) The diagrams do not provide any information about relative preferences.
C) Laurel enjoys science fiction movies more than Hardy.
D) Laurel enjoys romantic comedies more than Hardy.
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