If Dell Computer Company Could Produce More Computers at Lower

question 29

Multiple Choice

If Dell Computer Company could produce more computers at lower long-run average cost by increasing the quantity of all the inputs it uses, Dell definitely would experience

• A) decreasing marginal returns.
• B) diseconomies of scale.
• C) increasing marginal returns.
• D) economies of scale.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, not considered a part of the float and not having voting power or dividend rights.

Long-term Debt Contracts

Agreements for borrowing funds that are to be repaid over a period longer than one year.

Weighted-average Shares

A calculation used in financial reporting to compute the average number of shares outstanding during a period, adjusting for any stock splits or dividend issues.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.