For ABC, Inc

question 235

Multiple Choice

For ABC, Inc., 250,000 units of output per year represent minimum efficient scale. If ABC, Inc. decides to produce 200,000 units this year, it will be operating in the region of

• A)decreasing returns to scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)constant returns to scale.

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Definitions:

Unparsimonious

Describes explanations or theories that are more complex or include more assumptions than necessary to explain phenomena.

Falsifiable

A criterion of scientific theory that requires it to be capable of being proven false through observation or experiment.

Replicable

Capable of being repeated or duplicated under similar conditions, often used in the context of experiments or studies to verify results.

Insignificant

Lacking in importance, magnitude, or likely impact; trivial.