The ABC Corporation Decreases All of Its Inputs by 18

question 360

Multiple Choice

The ABC Corporation decreases all of its inputs by 18 percent and finds that its output falls by 18 percent. This means that initially it was producing

• A)in the range of constant returns to scale.
• B)in the range of economies of scale.
• C)where AP is less than MP.
• D)in the range of diseconomies of scale.

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Definitions:

Close Substitutes

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Local Monopoly

A situation where a single company or entity exclusively supplies a product or service in a specific geographic area, facing no competition.

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The compensation awarded to the Chief Executive Officer of a company, which may include salary, bonuses, shares, and other benefits.