In the Long Run a Company That Produces and Sells

question 442

Multiple Choice

In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units. For this range of output, the laundry detergent company exhibits

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)efficient scale.

Learn to use positive language to mitigate the impact of bad news.

Know the importance of promptness and clarity in delivering bad news.

Grasp the effectiveness of different communication mediums for delivering sensitive news.

Understand the significance of offering apologies and explanations in business communications.

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Definitions:

Total Revenue

The aggregate monetary gain a corporation obtains from its product or service sales, without accounting for any expenditures.

Demand Schedule

A table outlining the different quantities of goods or services that consumers are interested in and can feasibly buy at numerous price levels.

Total Revenue

The total income generated by the sale of goods or services before any costs are deducted.

Sales Quantity

The total number of units of a product sold in a specific time period.