Because of Increasing Marginal Cost, Most Supply Curves

question 12

Multiple Choice

Because of increasing marginal cost, most supply curves

• A)have a negative slope.
• B)have a positive slope.
• C)are horizontal.
• D)are vertical.

Grasp the idea of economies and diseconomies of scope.

Appreciate the significance of returns to scale on long-run costs.

Recognize the role of technology and specialization in achieving economies of scale.

Identify conditions that lead to diseconomies of scale.

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Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and distribution of goods determined mainly by competition in a free market.

George Ritzer

An American sociologist known for his work on consumerism, globalization, and the concept of "McDonaldization," which describes the process by which principles of the fast-food industry dominate sectors of society.

Prosumer

A portmanteau of producer and consumer, indicating individuals who produce some of the goods and services entering their consumption.

Consumer

An individual who purchases goods and services for personal use from the available offerings in the market.