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

question 368

Multiple Choice

In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,650 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:

Crespi

Refers to psychologist Leonard Crespi, known for his work in experimental psychology, especially in motivational research involving rewards.

Hunger Rats

Rats that are used in research studies to investigate the physiological, psychological, and behavioral processes related to hunger and satiety.

Reward

A positive reinforcement that increases the likelihood of a behavior being repeated.

Anticipatory Goal Responses

Behavioral or physiological responses that occur in anticipation of achieving a goal, often motivating the individual towards the goal.