In the Long Run Firm a Incurs Total Costs of $1,200

question 160

Multiple Choice

In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40 units.Firm A exhibits

• A) diseconomies of scale because total cost is rising as output rises.
• B) constant returns to scale because average total cost is constant as output rises.
• C) diseconomies of scale because average total cost is rising as output rises.
• D) economies of scale because average total cost is falling as output rises.

---

Definitions:

Exemption

A deduction allowed by law to reduce the amount of income that would otherwise be taxed.

Property Taxes

Property Taxes are levies on property owned by individuals or other legal entities, usually based on the value of the property.

Valuation Rate

A rate used to estimate the current value of assets or liabilities for purposes of financial reporting or appraisal.

Market Value

The prevailing rate at which a good or service is available for purchase or sale on the open market.