In the Long Run Firm a Incurs Total Costs of $1,200

question 160

Multiple Choice

In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40 units.Firm A exhibits

• A) diseconomies of scale because total cost is rising as output rises.
• B) constant returns to scale because average total cost is constant as output rises.
• C) diseconomies of scale because average 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:

Archival Research

A method of research involving the analysis of existing records or archival data to find answers to research questions.

Police Records

Documents and files maintained by law enforcement agencies that detail criminal incidents, arrest records, investigative reports, and other law enforcement activities.

Confounding Variable

Variable related to an independent variable that provides an alternative explanation for the relationship between the independent and dependent variables.

Independent And Dependent Variables

Variables in an experimental setup where the independent variable is manipulated to observe its effect on the dependent variable.