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:

Power Distribution

The way authority and control are allocated among individuals or groups within an organization or society, influencing decision-making and resource allocation.

Formal Authority

The power granted to individuals or positions within an organization officially recognized by titles and duties.

Transcend Self-interest

The act of going beyond one's own personal needs or desires to consider and act in accordance with the needs and well-being of others.

Performance Standards

Explicit benchmarks, criteria, or specific targets against which the actual performance of an individual, group, or organization can be measured.