Suppose That a Firm's Long-Run Average Total Costs of Producing

question 613

Multiple Choice

Suppose that a firm's long-run average total costs of producing small commuter jet airplanes increases as it produces between 2,000 and 4,000 airplanes. For this range of output, the firm is experiencing

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)specialization.

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Definitions:

U.S. Military

The armed forces of the United States, responsible for defending the country against external threats and ensuring national security.

Mao Zedong

The founding father of the People's Republic of China, ruling from its establishment in 1949 until his death in 1976, known for his communist policies and the Cultural Revolution.

People's Republic of China

A sovereign state in East Asia, known as the world's most populous country, governed by the Communist Party of China.

Chinese Civil War

A conflict between the Communist Party of China and the Nationalist Party (Kuomintang) from 1927 to 1949, leading to the establishment of the People's Republic of China.