In the Long Run for Firm A,total Cost Is $105

question 77

Multiple Choice

In the long run for Firm A,total cost is $105 when output is 3 units and $120 when output is 4 units.Does Firm A exhibit economies or diseconomies of scale?

• A)Diseconomies of scale, since total cost is rising as output rises.
• B)Diseconomies of scale, since average total cost is falling as output rises.
• C)Economies of scale, since total cost is rising as output rises.
• D)Economies of scale, since average total cost is falling as output rises.

Understand the utility and application of the strategy canvas tool in market positioning.

Comprehend the benefits and strategies behind offering private-label brands.

Grasp the concept and value of brand equity in the marketplace.

Identify the marketing approaches during the decline stage of the product life cycle.

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Definitions:

Elasticity of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how consumers' purchasing decisions are affected by price changes.

Natural Gas

A fossil fuel used primarily for heating, electricity generation, and as a fuel for vehicles, consisting mainly of methane and found underground.

Price Increase

A rise in the cost of goods or services over a specific period of time, which can affect purchasing power and economic stability.

Substitutes

Substitutes are goods or services that can be used in place of each other, fulfilling the same needs or desires of the consumer.