A Firm Has a Total Cost Function of C(Q)= 50

question 60

Multiple Choice

A firm has a total cost function of C(Q) = 50 + 10Q^1/2.The firm experiences:

• A) economies of scale.
• B) constant returns to scale.
• C) diseconomies of scale.
• D) All of the statements associated with this question are correct, depending on the quantity.

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Definitions:

Original Investments

Original investments refer to the initial amount of money invested in an asset, project, or enterprise by its owners or shareholders.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenues.

Salary Allowances

Predetermined amounts provided to employees, on top of their basic salary, for specific purposes such as travel, housing, or food.

Market Value

The ongoing rate for buying or selling a product or service in a trading environment.