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:

Values of Variables

The specific amounts or categories that variables can take on in data collection and analysis.

Numeric Value

A quantitative measure expressed as a number, which represents a specific quantity or amount.

Yearly Earnings

The total amount of money earned by an individual or entity in one year, often before taxes.

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