Author Question: "The bigger the volume, the lower the cost, and we pass these savings on to you" is a familiar ... (Read 78 times)

shanell · **on:** Oct 12, 2022

Question 1

Suppose a firm experiences decreasing returns to scale. This is shown graphically by
◦ a downward-sloping long-run average cost curve.
◦ a downward-sloping long-run marginal-cost curve.
◦ a horizontal long-run average cost curve.
◦ an upward-sloping long-run average cost curve.
◦ an increasing marginal product curve.

Question 2

"The bigger the volume, the lower the cost, and we pass these savings on to you" is a familiar advertising slogan. It implies essentially that the
◦ average fixed cost will decline or remain constant over the long run.
◦ consumer is able to pay less today because the total cost of the firm is expected to decline tomorrow.
◦ firm is altruistic.
◦ total cost of the firm will remain constant as output expands.
◦ firm expects to experience increasing returns over the relevant range of output.

breounasmoot · **Reply #1 on:** Oct 12, 2022

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 59% of students answer this correctly