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:

Fitness

The relative ability of an organism to survive, reproduce, and pass on its genes to the next generation in a particular environment.

Number Of Offspring

The count of new individuals produced or birthed by an organism or population within a specific time period.

Nest

A structure built by birds, certain insects, and other animals to hold their eggs and/or provide a space to rear their young.

Born

The process of coming into life or beginning existence.