A Firm Scaled Up Its Operation by Increasing All Inputs

question 91

Multiple Choice

A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced 150% increase in the output, the firm's long-run average cost exhibits

• A) economies of scale at the current output level.
• B) diseconomies of scale at the current output level.
• C) a constant long-run average cost at the current output level.
• D) diminishing marginal returns at the current output level.

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Definitions:

Conduction

The transfer of heat or electricity through a material or substance from one molecule to the next.

Thermal Radiation

The emission of electromagnetic waves from all objects with a temperature above absolute zero, conveying heat through a vacuum or transparent medium.

Radioactive Decay

The process by which an unstable atomic nucleus loses energy by emitting radiation, such as alpha particles, beta particles, or gamma rays.

Collision of Asteroids

An event where two or more asteroids in space come into contact with each other, often resulting in fragmentation or amalgamation.