The Total Cost of Producing One Unit Is $50

question 98

Multiple Choice

The total cost of producing one unit is $50.The total cost of producing two units is $75.At a production level of two units,the cost function exhibits

• A) economies of scale.
• B) rising average costs.
• C) increasing marginal costs.
• D) constant returns to scale.

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Definitions:

Gigantism

Abnormally tall growth caused when anterior pituitary secretes excessive amounts of human growth hormone during childhood

Pituitary Gland

A small gland located at the base of the brain responsible for releasing hormones that regulate various bodily functions, including growth, metabolism, and reproduction.

Hypothalamus

A region of the brain that regulates bodily functions such as temperature, hunger, and thirst, and is involved in controlling the pituitary gland.

Regulated

Controlled or governed according to rules or principles, often to maintain order or achieve a desired outcome.