In the Long Run Firm a Incurs Total Costs of $900

question 172

Multiple Choice

In the long run Firm A incurs total costs of $900 when output is 30 units and $1,200 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.

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Definitions:

Standard Deviation

Standard deviation measures the amount of dispersion or variability in a set of values, indicating how much the individual data points differ from the mean or average.

Utility Score

A numerical assessment that quantifies the satisfaction or utility an individual receives from making certain choices or consuming various goods and services.

Rate of Return

The increase or decrease in value of an investment over a set period, depicted as a percentage of the investment's starting cost.

Variance

A statistical measure that represents the dispersion of a set of data points or investment returns around their mean, indicating their spread or risk.