In the Long Run a Company That Produces and Sells

question 335

Multiple Choice

In the long run a company that produces and sells popcorn incurs total costs of $1,050 when output is 90 canisters and $1,200 when output is 120 canisters. The popcorn company exhibits

• A)diseconomies of scale because total cost is rising as output rises.
• B)diseconomies of scale because average total cost is rising as output rises.
• C)economies of scale because 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:

Civil Rights Act

A landmark piece of U.S. legislation passed in 1964 that outlaws discrimination based on race, color, religion, sex, or national origin.

Bona Fide Occupational Qualification

A legal term allowing employers to hire individuals based on characteristics that are normally considered discrimination if they are reasonably necessary to the normal operation of a particular business.

Civil Rights Act

A crucial U.S. law that bans discrimination rooted in race, color, religious beliefs, gender, or where someone comes from.

Americans With Disabilities Act

Legislation aimed at preventing discrimination against individuals with disabilities, ensuring their rights in various areas including employment, public accommodations, and transportation.