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

question 196

Multiple Choice

Suppose that a firm's long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns. 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:

Design Disruption

Innovative changes in design that significantly alter the market or industry standards.

Backlash

A strong and adverse reaction by a large number of people, often against a social or political development, which can affect public perceptions of a brand.

Loyal Users

This term describes consumers who repeatedly choose and prefer a particular brand or product over competitors, often due to satisfaction, trust, or perceived value.

Repositioning

The strategy of altering the market position of a product or brand to target new demographics or change consumer perceptions.