Author Question: If unit costs remain constant as the quantity of production increases and all inputs are variable, ... (Read 97 times)

tingc95 · **on:** Jun 30, 2018

If unit costs remain constant as the quantity of production increases and all inputs are variable, then a firm is experiencing
A) constant returns to scale.
B) economies of scale.
C) diseconomies of scale.
D) falling economies of scope.

Question 2

Terry wants to sell his car and the lowest price he is willing to accept is 3,000 . Alice likes the car and is willing to pay at most 4,000 for it. They begin to negotiate to arrive at a price. Which of the following statements will be true?
a. They are playing a zero-sum game.
b. The higher the price they agree on, the greater the benefit to both.
c. The longer they take to arrive at an agreed price, the lower the benefit to them.
d. They are playing a positive-sum game where their benefits add up to 1,000.