If the Output Elasticity of Total Cost Is Less Than

question 76

Multiple Choice

If the output elasticity of total cost is less than one, then the long-run average cost curve experiences:

• A)economies of scale.
• B)diseconomies of scale.
• C)decreasing returns to scale.
• D)the minimum efficient scale.

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Definitions:

Product Redesign

The process of changing or updating a product’s features, performance, or aesthetics to meet new market demands or improve efficiency.

Just-In-Time

A production strategy aimed at reducing times within the production system as well as response times from suppliers and to customers.

Demand Pull

An economic condition where an increase in demand for goods and services leads to higher prices and production.

Warehousing Needs

The requirements related to the storage of goods, including space, security, and management, to ensure safe and efficient handling.