In the Long Run a Company That Produces and Sells

question 555

Multiple Choice

In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company 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:

Master Gene

A regulatory gene that controls the expression of one or more genes and thus has a major effect on an organism's phenotype.

Development

Development refers to the process of growth and differentiation that organisms undergo from conception to maturity, encompassing both physical and psychological changes.

Operator

Part of an operon; a DNA binding site for a repressor.

Prokaryotic DNA

The genetic material found in prokaryotes (bacteria and archaea) that is typically circular and located in the cytoplasm.