Diseconomies of scale are also known as

Diseconomies of scale are also known as
 a. Increasing returns to scale
  b. Decreasing returns to scale
  c. Constant returns to scale
 d. None of the above

QUESTION 2

Jim is haggling with a car dealer, along with another customer, over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. As Jim makes an offer on the car, the other customer leaves the store, and the storekeeper accepts Jim's offer. This is because
 a. The storekeeper's disagreement value decreased
 b. The storekeeper's disagreement value increased
 c. The storekeeper's disagreement value did not change
  d. None of the above

QUESTION 3

A firm could experience diseconomies of scale if
 a. One of its inputs is fixed
 b. Marginal costs are rising
 c. All of its inputs are variable
  d. Both A & B

QUESTION 4

Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, it was empty. During the negotiations, a second customers walks in, interested in that particular car, and the storekeeper rejects Jim's offer. This is because
 a. The car dealer's disagreement value decreased
 b. The car dealer's disagreement value increased
 c. The car dealer's disagreement value did not change
  d. None of the above

QUESTION 5

All of these could be sources of economies of scale except
 a. Investment in more efficient technology
  b. Specialization
 c. A bottleneck procedure
 d. Discounts on bulk purchase of inputs

QUESTION 6

Jim is haggling with a car dealer over the sale price of a used car. When he entered the store he was the only customer. During the negotiations, a second customer walks in and is interested in that particular car. At this point
 a. Jim has a better chance of having his offer accepted, since the seller does not have any outside offers
  b. Jim has lower chances of having his offer accepted, since the seller has more outside offers
 c. The disagreement value for the seller has increased
 d. This should not impact Jim's chances of having his offer accepted

QUESTION 7

Economies of scale are also known as
 a. Increasing returns to scale
  b. Decreasing returns to scale
  c. Constant returns to scale
 d. None of the above

QUESTION 8

Jim is haggling with a car dealer over the sale price of a used car. When he entered the store he was the only customer. This means that
 a. Jim has a better chance of having his offer accepted, since the seller does not have any outside offers
  b. Jim has lower chances of having his offer accepted, since the seller has more outside offers
 c. The disagreement value for the seller has increased
 d. Only A&C