When You Produce Cars, It Is Enormously Expensive to Produce

question 64

Multiple Choice

When you produce cars, it is enormously expensive to produce one car, but ultimately the costs per car decrease as more are produced. This would be an example of:

• A) increasing marginal opportunity costs.
• B) decreasing marginal opportunity costs.
• C) constant marginal opportunity costs.
• D) increasing returns to scale.

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Definitions:

Seasonal Adjustments

Seasonal adjustments are statistical changes made to remove or reduce periodic and predictable fluctuations within data, often related to specific seasons or times of year.

Hibernation

A state of inactivity and metabolic depression in animals during winter to survive when food is scarce, characterized by lower body temperature, slow breathing, and heart rate.

Ecdysone

Steroid hormone that controls molting in arthropods.

Molting Hormone

A hormone, also known as ecdysone, that triggers the molting process in arthropods, leading to shedding of the exoskeleton and growth.