Suppose That Unit Costs Are the Same at Both 100

question 127

Multiple Choice

Suppose that unit costs are the same at both 100 units of output and 150 units of output. Unit costs are higher at output levels less than 100 units and at output levels greater than 150 units. It follows that minimum efficient scale exists

• A)somewhere between 100 and 150 units.
• B)at 100 units.
• C)at 150 units.
• D)at less than 100 units.
• E)at greater than 150 units.

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Definitions:

R-charts

Control charts used to monitor the range within a sample, helping to identify variability in a process over time.

Sample Averages

The mean of a set of data points taken from a larger population, used in statistics to estimate the characteristics of the whole population.

X-bar

A statistical term representing the average or mean value of a set of data, commonly used in quality control processes.

R-chart

A tool in statistical process control that displays the variation among different samples to assess the stability of processes.