In the Long Run a Company That Produces and Sells

question 520

Multiple Choice

In the long run a company that produces and sells covers for cell phones incurs total costs of $2,500 when output is 1,250 covers and $4,000 when output is 1,500 covers. For this range of output, the cell phone cover company exhibits

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

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Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms to convert food into energy, build molecules, and eliminate waste products.

Protein Molecules

Large biomolecules composed of one or more chains of amino acids that perform a vast array of functions within organisms.

Adenine Base

A nitrogenous base, one of the four constituent bases of DNA and RNA, paired with thymine in DNA and uracil in RNA.

Phosphate Groups

Functional groups consisting of a phosphorus atom bonded to four oxygen atoms, critical components in the energy transfer within cells and in the structure of nucleic acids.