A Firm Has a Total Cost Function of C(Q) =

question 74

Multiple Choice

A firm has a total cost function of C(Q) = 75 + 25Q^1/2.The firm experiences

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)all of the statements associated with this question are correct.

---

Definitions:

Common Shares

Equity shares that represent ownership in a company, giving holders voting rights and a claim on a portion of the company's profits through dividends.

Fixed Asset Turnover Ratio

A financial indicator that measures a company's ability to generate net sales from fixed-asset investments, specifically property, plant, and equipment.

Financial Statements

Official documentation detailing the financial transactions and status of an entity, such as a company or individual, usually comprising a balance sheet, income statement, and statement of cash flows.

Common Shares

A type of equity ownership in a corporation, where holders have voting rights and potential dividends, but come after preferred shareholders in bankruptcy or liquidation.