When a firm is experiencing decreasing marginal costs, it implies
a. marginal productivity is decreasing
b. workers are getting more unproductive
c. a constant marginal productivity
d. increasing marginal productivity
QUESTION 2To save on negotiation costs when buying a car
a. Always go towards the end of the day, when the seller does not get a chance to make a counteroffer
b. Threaten to leave if the car dealer says anything but yes to your offer
c. Carry only one cashier's check that cannot be modified
d. All of the above
QUESTION 3If long run average costs fall with output, you have
a. Increasing returns to scale
b. Decreasing returns to scale
c. Constant returns to scale
d. None of the above
QUESTION 4When buying a car from a dealership, to get the best bargain
a. Allow the dealership to make the first offer
b. Keep a cushion of bargaining space in the quoted price
c. Make a take it or leave it offer
d. All of the above
QUESTION 5If long run average costs rise with output, you have
a. Increasing returns to scale
b. Decreasing returns to scale
c. Constant returns to scale
d. None of the above
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