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Question
Samantha owns a gas station. If she moves into a larger lot but finds that her average costs have increased in the long run, we know that Samantha is experiencing
a. increasing marginal product.
b. diminishing marginal product.
c. diseconomies of scale.
d. constant returns to scale.
e. economies of scale.
Answer
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Related questions
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The economic entity most likely to engage in price gouging is
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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