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Author Question: What is meant by decreasing returns to scale? What will be an ideal ... (Read 54 times)

Pineapplelove6

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on: Jun 29, 2018
What is meant by decreasing returns to scale?
 
  What will be an ideal response?

Question 2

Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand.
 
  A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase


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mmpiza

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Decreasing returns to scale implies that an increase in the firm's scale of production leads to higher average costs per unit produced.

Answer to Question 2

D


Pineapplelove6

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

flexer1n1

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Reply 3 on: Yesterday
Excellent

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