In the Long Run Firm a Incurs Total Costs of $1,200

question 368

Multiple Choice

In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,650 when output is 40 units.Firm A exhibits

• A) diseconomies of scale because total cost is rising as output rises.
• B) diseconomies of scale because average total cost is rising as output rises.
• C) economies of scale because total cost is rising as output rises.
• D) economies of scale because average total cost is falling as output rises.

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Definitions:

Reinstatement

The act of restoring someone or something to their former position, status, or condition.

Wrongful Dismissal

The unfair or illegal termination of an employee's contract of employment in violation of labor laws or contractual terms.

Corporate Reorganization

The process by which a company significantly changes its structure, operations, or strategy, often to improve efficiency, competitiveness, or performance.

Notice Period

The time frame that must pass between notifying one party of a contract's termination and the actual end of the contract.