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

question 89

Multiple Choice

Suppose that a firm's total cost of producing an output of 400 units a day is currently $2,000.If technology and the price of inputs remain unchanged,what level of output would be produced if total cost rises to $4,000 and decreasing returns to scale exist?

• A)5 units.
• B)More than 400 but less than 800 units.
• C)800 units.
• D)More than 800 units.

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Definitions:

Bruits

Sounds made by blood flow, usually abnormal, that can indicate the presence of an artery blockage, heard through a stethoscope.

Otoscopic Examination

A medical procedure that involves looking into the ear with an otoscope to check for illness or injury.

Ear Canal

The tubular passage leading from the outer ear to the eardrum, involved in directing sound waves to the inner ear.

Pinna

The external segment of the ear, which gathers sound waves and guides them towards the ear canal.