The Firm's Long-Run Total Cost Is Given by LTC =

question 128

Multiple Choice

The firm's long-run total cost is given by LTC = 100Q - 10Q² + (1/3) Q³, and long-run marginal cost is given by LMC = 100 - 20Q + Q². At what output level does the firm have economies of scale?

• A) Q < 15
• B) Q < 175
• C) Q < 4,000
• D) Q < 88

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Definitions:

Discretionary Fiscal Policy

Discretionary Fiscal Policy involves government action to stimulate or restrain the economy via changes in taxation and spending, based on current economic conditions.

Short-run Phillips Curve

A curve illustrating the inverse relationship between the rate of inflation and the rate of unemployment, showing that lower unemployment in the near term can be associated with higher inflation.

U.S. Economic Data

Statistical information about the United States economy covering various aspects such as employment, GDP, inflation, and more, used for analysis and policy-making.

Passive Macroeconomic Policy

A strategy where the government does not intervene or adjusts its policy measures in response to economic fluctuations.