Driver a Is Cruising Along Enjoying the Autumn Colours

question 37

Multiple Choice

Driver A is cruising along enjoying the autumn colours. Driver B starts her car at the instant he passes her. Their velocities are shown as functions of time in the graph below. At what instants in time on the graph are drivers A and B side by side?

• A)0 s, 2 s
• B)0 s, 4 s
• C)2 s, 4 s
• D)2 s, 6 s
• E)4 s, 6 s

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Definitions:

Increasing Return to Scale

When an increase in the amount of inputs results in a disproportionate increase in the output produced.

Increasing Return to Scale

A situation in which output increases by a larger proportion than the increase in inputs in the production process.

Long-Run Average Cost Curve

A curve showing the minimum average cost at which a firm can produce any given level of output in the long term, when all inputs are variable.

Small Firms

Small firms are businesses with a relatively small number of employees, limited revenue, and a localized operational base, often contributing significantly to innovation and employment.