At the Current Level of Output, Long-Run Marginal Cost Is

question 148

Multiple Choice

At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. 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) the cost-output elasticity is greater than one.

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Definitions:

Analgesic

A class of drugs designed to relieve pain without causing loss of consciousness.

Tylenol

A popular brand name for acetaminophen, a medication used to reduce fever and relieve pain.

PDR

Stands for Physician's Desk Reference, a compendium of prescription drugs and their effects.