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:

Gross Margin Percentage

A financial metric that represents the difference between sales and cost of goods sold, expressed as a percentage of sales.

Year 2

The second year in a sequence, often used in financial and operational planning or analysis.

Debt-to-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholders' equity; it indicates the proportion of equity and debt the company is using to finance its assets.

Year 2

A reference to the second year in a given context, typically used in financial forecasting or product development timelines.