Suppose That in 2010 ABC Corp

question 76

Multiple Choice

Suppose that in 2010 ABC Corp. produced 500 million units of a good at an average cost of $2, and in 2011 ABC Corp. expanded its plant capacity and produced 600 million units at an average cost of also $2. In this range, one can conclude that ABC Corp. is experiencing:

• A)economies of scale.
• B)diseconomies of scale.
• C)neither economies of scale or diseconomies of scale.
• D)diminishing marginal product.

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Definitions:

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A statistical method used to demonstrate the effect size of a binary outcome in a more understandable way for practical significance.

Correlation

describes a statistical measure that expresses the extent to which two variables change together, indicating a possible relationship between them, but not causation.

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An unplanned, unforeseen event involving a vehicle impacting another object, vehicle, or pedestrian, often leading to damage or injury.

P-hacking

The practice of selectively reporting experimental results to find statistically significant outcomes.