Suppose That a Firm's Total Cost of Producing an Output

question 14

Multiple Choice

Suppose that a firm's total cost of producing an output of 400 units a day is currently $2,000.If technology and the price of inputs remain unchanged,what level of output would be produced if total cost rises to $4,000 and increasing returns to scale exist?

• A)5 units.
• B)More than 400 but less than 800 units.
• C)800 units.
• D)More than 800 units.

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