The Table Given Below Shows the Average Total Cost of Production

question 32

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-If a firm doubles its resources and generates an output level which is more than double, it is said to be experiencing:

• A)economic fluctuations.
• B)recession.
• C)diseconomies of scale.
• D)increasing marginal returns to a factor.
• E)economies of scale.

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Definitions:

Packaged Meats

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Modern Corporation

A contemporary business entity characterized by complex structures, legal personhood, and often, large scale operations and global reach.

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A period roughly from 1870 to 1900 marked by significant industrial, social, and political changes worldwide.

Vertical Integration

A business strategy where a company controls multiple stages of production or distribution within the same industry to increase efficiency and reduce costs.