When a factory is operating in the short run,
A. it cannot alter variable costs.
B. total cost and variable cost are usually the same.
C. average fixed cost rises as output increases.
D. it cannot adjust the quantity of fixed inputs.
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In the short run, a firm that produces and sells house paint can adjust
A. where to produce along its long-run average-total-cost curve.
B. the size of its factories.
C. how many workers to hire.
D. the location of its factory.
The most likely explanation for economies of scale is
A. coordination problems.
B. specialization of labor.
C. increasing marginal cost.
D. decreasing marginal cost.
Economies of scale occur when
A. long-run average total costs rise as output increases.
B. long-run average total costs fall as output increases.
C. average fixed costs are falling.
D. average fixed costs are constant.
If the average-total-cost of producing five units is $10, and the marginal-cost of producing the fifth unit is $10, then the average-total-cost curve is at its minimum at five units.
A. 对
B. 错
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