Which of the Following Statements Is Correct If the Appropriately

question 82

Multiple Choice

Which of the following statements is correct if the appropriately sized firm is one with a large output?

• A)Constant returns to scale must begin at low levels of output.
• B)Economies of scale must prevail until high levels of output are reached.
• C)Diseconomies of scale must begin at low levels of output.
• D)Constant returns to scale must be absent.

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Definitions:

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.

Marginal Utility

The change in satisfaction or benefit derived from consuming an additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.