If the Long-Run Average Cost of Producing 50 Units of Good

question 115

Multiple Choice

If the long-run average cost of producing 50 units of Good X is $3.00 and the long run average cost of producing 51 units of Good X is $3.25, the firm is

• A) experiencing economies of scale in the range of 50 to 51.
• B) experiencing constant returns to scale in the range of 50 to 51.
• C) experiencing diseconomies of scale in the range of 50 to 51.
• D) operating at the minimum efficient scale.

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Definitions:

Public Policy

Government actions and procedures designed to address public issues and influence the behavior of citizens, businesses, and other parts of society.

Manufacturing Jobs

Manufacturing Jobs are positions involved in the creation of products either directly from raw materials or by assembling components.

Frictional Unemployment

Short-term joblessness experienced by individuals transitioning between jobs or entering the workforce.

Unemployment Insurance

A government-provided benefit offering temporary financial assistance to workers who have lost their jobs through no fault of their own, to help cover living expenses.