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.
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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
If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising.
A. 对
B. 错