Table 13-17 Consider the Following Table of Long-Run Total Cost for Four

question 42

Multiple Choice

Table 13-17
Consider the following table of long-run total cost for four different firms:
-Refer to Table 13-17. Which firm has diseconomies of scale over the entire range of output?

• A)Firm 1 only
• B)Firm 2 only
• C)Firms 1 and 2 only
• D)Firm 3 only

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Definitions:

Dividends

Payments by a corporation of all or part of its profit to its stockholders (the corporate owners).

Direct Investment

Describes the process of acquiring a controlling interest in foreign assets, such as a company or property, with the aim of managing the investment directly.

Japanese Company

A business entity registered and operating in Japan, often characterized by its management style and hierarchical structure.

Software Company

A business entity that specializes in developing, distributing, and maintaining software applications or systems.