In the Long Run Firm a Incurs Total Costs of $1,050

question 295

Multiple Choice

In the long run Firm A incurs total costs of $1,050 when output is 30 units and $1,200 when output is 40 units.Firm A exhibits

• A) diseconomies of scale because total cost is rising as output rises.
• B) diseconomies of scale because average total cost is rising as output rises.
• C) economies of scale because total cost is rising as output rises.
• D) economies of scale because average total cost is falling as output rises.

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Definitions:

Option

In finance, it refers to a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

Observations

Data points or individual pieces of information collected during a study or research.

Simple Linear Regression

An analytical technique that utilizes a linear equation to depict the connection between a single independent variable and a dependent variable.

Independent Variables

Variables that are manipulated or controlled in an experiment to test the effects on dependent variables, without being influenced by other variables in the study.