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

question 303

Multiple Choice

Suppose that a firm's long-run average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. 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:

Vinegar

A sour-tasting liquid made from the fermentation of diluted alcohol products, often used as a condiment or for pickling.

Baking Soda

A sodium bicarbonate powder, commonly used as a leavening agent in baking to cause dough to rise.

Beaker

A simple cylindrical container with a flat bottom, used in laboratories for mixing, stirring, and heating chemicals.

Hydrophobic

Hydrophobic refers to the property of being water-repellent or not mixable with water, often relating to molecules or substances that do not dissolve in water.