A Firm Is Producing 10,000 Units of Output at a Total

question 151

Multiple Choice

A firm is producing 10,000 units of output at a total cost of $5,000. If the firm increases output by 5,000 units and its total costs rise by $2,000, the firm has:

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

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Definitions:

Dieting

The practice of eating food in a regulated manner to achieve or maintain a specific weight or health goal.

Body Weight

A measurement of an individual's mass, often used as an indicator of health in relation to height.

Food-Deprived Countries

Nations suffering from high levels of food insecurity, where access to sufficiently nutritious food is limited or inconsistent, leading to undernourishment or starvation.

Adoptive Siblings

Children who become siblings through the process of adoption, not by biological relation.