Suppose a Firm Is in a Range of Production Where

question 199

Multiple Choice

Suppose a firm is in a range of production where it is experiencing economies of scale. Knowing this, we can predict that

• A)the long-run average total cost curve is upsloping.
• B)a 10 percent increase in all inputs will increase output by less than 10 percent.
• C)a 10 percent increase in all inputs will increase output by more than 10 percent.
• D)the firm is encountering problems of managerial bureaucracy because of its size.