Suppose a Firm Doubles Its Output in the Long Run

question 26

Multiple Choice

Suppose a firm doubles its output in the long run. At the same time the unit cost of production remains unchanged. We can conclude that the firm is

• A) exploiting the economies of scale available to it.
• B) facing constant returns to scale.
• C) facing diseconomies of scale.
• D) not using the available technology efficiently.

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Definitions:

Bacterial Transformation

A process by which bacteria take up foreign DNA from their surroundings, leading to genetic change.

DNA

A molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Anticodon

A sequence of three nucleotides in transfer RNA that is complementary to, and combines with, the three-nucleotide codon.

Codon

A triplet of mRNA nucleotides. The 64 possible codons collectively constitute a universal genetic code in which each codon specifies an amino acid in a polypeptide, or a signal to either start or terminate polypeptide synthesis.