Which of the Following Statements Is Correct If a Firm's

question 77

Multiple Choice

Which of the following statements is correct if a firm's capacity output increases from 400 to 800 and its total costs rise from $60,000 to $110,000?

• A)The firm is experiencing constant returns to scale.
• B)The firm is experiencing diseconomies of scale.
• C)The firm is experiencing economies of scale.
• D)The firm's long-run average cost must have decreased,but its short-run average cost could have either decreased or increased.

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Definitions:

Subcontraries

In logic, subcontraries refer to a pair of propositions in Aristotelian or traditional square of opposition that cannot both be false, although they can both be true.

Referents

Objects, events, or concepts to which words, symbols, signs, or expressions refer.

Affirmative Proposition

A statement that asserts the truth of something, as opposed to denying it.

Modern View

Contemporary perspective or way of thinking in contrast to traditional views.