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:

Concrete-Operational

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events and understand concepts of conservation.

Preoperational

A stage in Piaget's theory of cognitive development, during which children aged 2 to 7 years old develop memory and imagination but do not yet think logically.

Preoperational Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, marked by rapid language acquisition and symbolic thinking.

Age

A measure of the time an individual or object has existed, often used to describe developmental stages in humans.