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.

---

Definitions:

Spin Balancing

Spin Balancing is a process used to equalize the weight distribution on a tire and wheel assembly to minimize vibration at high speeds, ensuring a smoother ride and longer tire life.

Internal Balancing Agent

A material used inside tires or other rotating components to automatically distribute weight evenly and reduce vibration.

Axle Ends

The extremities of an axle to which wheels, gears, or other components are fixed, facilitating rotation and movement.

Safety Cage

A protective framework designed to enclose machinery, equipment, or areas to prevent access by unauthorized personnel and protect them from harm.