Table 13-13 Consider the Following Table of Long-Run Total Cost for Four

question 278

Multiple Choice

Table 13-13
Consider the following table of long-run total cost for four different firms:

-Refer to Table 13-13.Which firm has diseconomies of scale over the entire range of output?

• A) Firm 1
• B) Firm 2
• C) Firm 3
• D) Firm 4

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Definitions:

Pay Period

Pay period refers to the recurring length of time over which employee wages are calculated and distributed, such as weekly, bi-weekly, or monthly.

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Taxes imposed by the Federal Insurance Contributions Act, which fund Social Security and Medicare, required to be withheld from employees' paychecks and matched by employers.

OASDI

Stands for Old-Age, Survivors, and Disability Insurance, a program that provides monthly benefits to retired individuals, survivors of deceased workers, and disabled workers funded through payroll taxes.