Figure 7.4.2 -The Cost-Output Elasticity Equals 1.4. This Implies That

question 176

Multiple Choice

Figure 7.4.2
-The cost-output elasticity equals 1.4. This implies that:

• A) there are neither economies nor diseconomies of scale.
• B) there are economies of scale.
• C) there are diseconomies of scale.
• D) marginal cost is less than average cost.

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Definitions:

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Economic Resource

Any resource used by humans to produce goods or services, including labor, capital, land, and entrepreneurship.

Real Capital

Physical assets like machinery, buildings, and technology that are used in production to create value.