Assume That a Firm's Total Cost of Producing an Output

question 30

Multiple Choice

Assume that a firm's total cost of producing an output of 300 units is currently $30,000.If output increases to 600 units,total cost increases to $60,000 and the price of inputs and technology remain unchanged,state whether constant returns to scale,economies of scale or diseconomies of scale exist in this case.

• A)Economies of scale
• B)Diseconomies of scale
• C)Constant returns to scale
• D)Increasing returns to scale

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Definitions:

Land Ordinance

Legislation passed by Congress under the Articles of Confederation that established a systematic and orderly process for surveying, selling, and settling lands in the western territories.

Tariffs

Taxes imposed by a government on imported or exported goods.

Land Surveying

The measurement and mapping of land boundaries, topography, and features to determine property lines and design construction projects.

Westward Expansion

The 19th-century movement of settlers into the American West, driven by the belief in Manifest Destiny and leading to significant territorial acquisitions and conflicts.