In the Long Run Firm a Incurs Total Costs of $1,050

question 295

Multiple Choice

In the long run Firm A incurs total costs of $1,050 when output is 30 units and $1,200 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:

Interval Estimate

An estimate of a population parameter that specifies a range within which the parameter is estimated to lie.

Population Parameter

Any numerical quantity that characterizes a given population or some aspect of it.

Confidence Interval

A continuum of estimates, garnered from sample data analysis, presumed likely to contain the concealed value of a population trait.

Population Mean

The average of a set of numerical values of an entire population.