In the Long Run Firm a Incurs Total Costs of $1,200

question 368

Multiple Choice

In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,650 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:

Macrophages

A type of white blood cell that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells in a process called phagocytosis.

Lingual Tonsils

Small masses of lymphatic tissue located at the base of the tongue, important for immune response against inhaled or ingested pathogens.

Pharyngeal

Related to the pharynx, the part of the throat that sits behind the mouth and nasal cavity.

Palatine

Referring to the bones that contribute to the structure of the palate in the mouth, important for forming the roof of the oral cavity.