At a Particular Output Level, If a Firm's Long- Run

question 77

Multiple Choice

At a particular output level, if a firm's long- run marginal cost is $12 and its long- run average cost is $8, the firm is likely to be experiencing _________.

• A)economies of scale
• B)constant returns to scale
• C)diseconomies of scale
• D)sunk costs

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Definitions:

Le Chatelier's Principle

A principle that states that if a system at equilibrium is subjected to a change in concentration, temperature, volume, or pressure, then the system adjusts to counteract that change and restore a new equilibrium.

Hemoglobin

A protein found in red blood cells responsible for transporting oxygen from the lungs to the rest of the body and returning carbon dioxide from the tissues back to the lungs.

Oxygenated

Refers to compounds or blood enriched with oxygen.

Common Poison

Substances that can cause harm or death when introduced to a living organism's body in sufficient quantities.