Suppose the Output Elasticity of Total Cost Is 1

question 43

Multiple Choice

Suppose the output elasticity of total cost is 1.5. This implies the average cost curve exhibits:

• A)increasing returns to scale.
• B)economies of scale.
• C)neither economies nor diseconomies of scale.
• D)diseconomies of scale.

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Definitions:

Continuous Process

An operation or production system where input materials are continuously fed and processed, resulting in a continuous output.

The Origin of Species

Refers to Charles Darwin's seminal work on evolutionary biology, proposing the theory of natural selection.

Darwin

Refers to Charles Darwin, the 19th-century naturalist known for his theory of evolution and the principle of natural selection.

Human Evolution

The lengthy process of change by which people originated from apelike ancestors, characterized by developments in physical, social, and intellectual capacities.