In the Long Run a Company That Produces and Sells

question 442

Multiple Choice

In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units. For this range of output, the laundry detergent company exhibits

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)efficient scale.

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Definitions:

Rejection Region

The set of values for which the null hypothesis is rejected in hypothesis testing.

Typing Speeds

The measure of how fast an individual can type, often expressed in words per minute (WPM), influencing productivity in many computer-related tasks.

Z-statistic

A statistical measurement that represents the number of standard deviations a data point is from the mean of a data set.

Parametric Tests

Statistical tests based on assumptions about the distribution of the data (e.g., that it is normally distributed).