Buffalo Aircraft Doubles the Amount of All of the Inputs

question 204

Multiple Choice

Buffalo Aircraft doubles the amount of all of the inputs it uses-the factory doubles in size and twice as many workers are hired.After this expansion, the number of aircraft produced triples.This means that Buffalo Aircraft is operating with:

• A)increasing marginal cost.
• B)economies of scale.
• C)increasing average total cost.
• D)decreasing average variable cost.

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Definitions:

Tonga Island Arc

The Tonga Island Arc is a chain of islands in the southwestern Pacific Ocean formed from the tectonic subduction of the Pacific Plate under the Indo-Australian Plate, characterized by volcanic activity and earthquakes.

S-waves

Secondary or shear waves that travel through the body of the Earth during an earthquake, moving material perpendicular to the wave's direction of travel and cannot pass through liquids.

P-waves

Primary waves that are the fastest type of seismic waves, capable of moving through both solid and liquid layers of the Earth.

Surface Waves

Seismic waves that travel on Earth’s surface.