A Firm Is Considering Changing Its Plant Size

question 122

Multiple Choice

A firm is considering changing its plant size. It calculates the amount of output it would be able to produce and the total cost for various plant sizes, as shown in the accompanying table. If the firm is currently using plant size C, the firm is experiencing which of the following?

• A) economies of scale
• B) diseconomies of scale
• C) constant returns to scale
• D) diminishing marginal product
• E) increasing marginal product \(\begin{array}{rr}\text { Plant Size }&\text { Quantity }&\text { Total Cost (\$) }\\
• A&1 & 10 \\
• B&10 & 80 \\
• C&100 & 900 \\
• D&200 & 2,000 \\
• E&500 & 5,500 \\
• F&1,000 & 15,000
• \end{array}\)

Understand the significance of access modifiers (public, private, protected, package access) in the context of interfaces and classes.

Familiarize with the syntax required to implement interfaces in classes, such as the use of `implements` keyword.

Appreciate the benefits and use cases of encapsulation, abstraction, and polymorphism through interfaces.

Identify the proper handling of exceptions, specifically in the context of method overriding and class inheriting from interfaces.

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Definitions:

Cost Flow

The process of tracking the progression of costs as they move through a company's production process and into the financial statements.

Manufacturer

An entity or individual that makes goods from raw materials through the use of manual labor or machines, often within an industrial context.

Service Provider

A company or individual that offers services to others in exchange for payment, usually specialized in a particular domain or industry.

Job Order Cost

The accumulation and assignment of costs to a specific job, including labor, materials, and overhead.