The ability to lower the average costs of production as the quantity produced increases is called ...

The ability to lower the average costs of production as the quantity produced increases is called
 a. Economies of scale
 b. Economies of scope
 c. Diseconomies of scale
  d. Diseconomies of scope

QUESTION 2

Jill, a bookkeeper, just received an attractive offer from an outside firm and so she asks for a raise from her current employer. She would be in a strong bargaining position because
 a. Her value for disagreement has increased
 b. Her value for disagreement has decreased
  c. Her value for disagreement has not changed
  d. Her value for agreement has not changed

QUESTION 3

As a table manufacturing company produces more tables, the average total cost of each table produced increases. This could be because:
 a. Total fixed costs are decreasing as more tables are produced
  b. There are economies of scale
 c. There are diseconomies of scale
 d. Total variable cost is decreasing as more tables are produced.

QUESTION 4

Jill, a bookkeeper, just received an attractive offer from an outside firm and so she asks for a raise from her current employer. If the management of Jill's company is aware of the offer, she would
 a. Have a weaker bargaining position
  b. Have a stronger bargaining position
  c. Be laughed at
 d. All of the above

QUESTION 5

A firm experiencing constant economies of scale will have a long-run average cost curve that is:
 a. upward sloping
 b. vertical
 c. downward sloping
  d. horizontal