The Long-Run Average Cost of Producing 19 Units of Output

question 86

Multiple Choice

The long-run average cost of producing 19 units of output is $56, and the long-run average cost of producing 20 units is also $56. These numbers illustrate:

• A) decreasing marginal productivity.
• B) constant returns to scale.
• C) economies of scale.
• D) diseconomies of scale.

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Definitions:

Hydraulic Circuits

Systems using pressurized fluid to power machinery or equipment, controlling the flow and direction efficiently.

Unbalanced Vane Pump

A type of rotary pump where uneven pressure on the pump vanes can lead to operational inefficiencies or damage.

Balanced Vane Pump

A type of hydraulic pump characterized by its design that balances the hydraulic forces to reduce wear and extend the pump's life.

Outlet Port

An exit point on a device or machine where substances (fluid or gas) are expelled or discharged.