In the Long Run a Company That Produces and Sells

question 311

Multiple Choice

In the long run a company that produces and sells candy bars incurs total costs of $1,200 when output is 2,400 candy bars and $1,400 when output is 2,900 candy bars. The candy bar company 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.

---

Definitions:

Size Advantage

The benefits gained by organizations or entities due to their larger scale of operations, resources, or market presence compared to competitors.

Dominant Culture

The culture of the most powerful group in society, which often sets norms, values, and expectations that are broadly shared.

Shared Actions

Activities or tasks undertaken collaboratively by a group or community with a common goal or purpose.

Subcultures

Distinct cultural groups that exist within a larger culture, characterized by their own values, practices, and beliefs.