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:

Alternative Evaluation

The stage in the consumer decision-making process where different products, brands, or options are assessed against set criteria.

Production Capability

The maximum amount of goods or services a company can produce in a given timeframe with available resources.

Supplier Audit

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Quality Control

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