Suppose That a Firm's Long-Run Average Total Costs of Producing

question 303

Multiple Choice

Suppose that a firm's long-run average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. For this range of output, the firm is experiencing

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

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Definitions:

Procedural Memory

A type of long-term memory involved in learning and retaining the ability to perform tasks, often referred to as muscle memory.

Semantic Memory

A type of long-term memory involving the capacity to remember meanings, concepts, facts, and knowledge about the external world.

Sensory Register

The component of the memory system where sensory information is stored in its raw form very briefly before it begins to be processed.

Procedural Memory

A type of long-term memory for performing certain skills and tasks without conscious awareness of these previous experiences.