Using 100 Workers and 10 Machines, a Firm Can Produce

question 20

Multiple Choice

Using 100 workers and 10 machines, a firm can produce 10,000 units of output; using 250 workers and 25 machines, the firm produces 21,000 units of output. These facts are best explained by:

• A) economies of scope.
• B) diseconomies of scale.
• C) economies of scale.
• D) diminishing marginal productivity.

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Definitions:

Rawlsian Justice

A theory of justice that emphasizes fairness as the most important aspect of an ethical society, often associated with the "veil of ignorance" thought experiment.

Risk Averse

A term describing individuals or entities that prefer to avoid risks, often opting for the option with the most predictable outcome.

Medicaid

A government healthcare program providing medical assistance to low-income individuals and families.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.