Suppose That a Firm's Long-Run Average Total Costs of Producing

question 196

Multiple Choice

Suppose that a firm's long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns. For this range of output, the firm is experiencing

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)specialization.

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Definitions:

Learning Disabilities

Neurologically-based processing problems that can interfere with learning basic skills such as reading, writing, or math, and can also affect higher-level skills such as organization, time planning, and abstract reasoning.

Attention Deficit Disorder (ADD)

A neurodevelopmental disorder characterized by difficulties with focus, impulsivity, and attention.

Learning Disability

A neurological disorder that affects a person's ability to read, write, spell, or do math, despite having average or above-average intelligence.

Critical Thinker

An individual who actively analyzes, evaluates, and synthesizes information in a reflective and logical manner.