A Firm Is Considering Changing Its Plant Size

question 152

Multiple Choice

A firm is considering changing its plant size.It calculates the amount of output it would be able to produce and the total cost for various plant sizes,as shown in the accompanying table.If the firm is currently using plant size C,the firm is experiencing which of the following?

• A) economies of scale
• B) diseconomies of scale
• C) constant returns to scale
• D) diminishing marginal product
• E) increasing marginal product

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Definitions:

Machining Symbol

A type of symbol used on engineering drawings to indicate the type of machining operation required, surface texture, or surface roughness on a part.

Leader

In drafting and design, a line that connects a note or symbol to a specific location, typically used for annotations.

Finished Surface

A surface that has undergone a final manufacturing process to meet specified criteria of texture, smoothness, or coating.

Symbol

A symbol is a graphical representation or sign that stands for an object, concept, or operation in various fields such as mathematics, physics, and engineering.