In the Long Run a Company That Produces and Sells

question 311

Multiple Choice

In the long run a company that produces and sells candy bars incurs total costs of $1,200 when output is 2,400 candy bars and $1,400 when output is 2,900 candy bars. The candy bar 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:

Share Value

Refers to the identified worth of a single share of a company's stock, determined by market activities and influencing investor decisions.

Shareholder Vote

A formal decision-making process by which shareholders cast ballots on corporate matters as per their share ownership.

Unanimous Approval

A decision-making process where all participants agree on a specific outcome or decision.

Disbanding Corporation

The legal process of dissolving a corporation, concluding its affairs, and liquidating its assets.