A Firm Scaled Up Its Operation by Increasing All Inputs

question 91

Multiple Choice

A firm scaled up its operation by increasing all inputs by 100%. If the firm experienced 150% increase in the output, the firm's long-run average cost exhibits

• A) economies of scale at the current output level.
• B) diseconomies of scale at the current output level.
• C) a constant long-run average cost at the current output level.
• D) diminishing marginal returns at the current output level.

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Definitions:

ECV Deficit

Extracellular Volume (ECV) Deficit is a medical condition where there is a reduction in the volume of fluid outside of cells, which can lead to dehydration and electrolyte imbalances.

Skin Tenting

A sign of dehydration that occurs when skin that is pinched and lifted takes some time to return to its normal position.

Trousseau's Sign

A clinical sign where inflation of a blood pressure cuff on the arm causes a carpal spasm, indicating hypocalcemia.

Postural Blood Pressure

A measurement of blood pressure after changing body positions, used to assess for conditions like orthostatic hypotension.