Table 13-17 Consider the Following Table of Long-Run Total Cost for Four

question 42

Multiple Choice

Table 13-17
Consider the following table of long-run total cost for four different firms:
-Refer to Table 13-17. Which firm has diseconomies of scale over the entire range of output?

• A)Firm 1 only
• B)Firm 2 only
• C)Firms 1 and 2 only
• D)Firm 3 only

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Definitions:

Local Governments

Administrative bodies that manage and govern specific areas within a country, such as cities, towns, or regions, often responsible for local services and laws.

Federal Spending

Refers to the total amount of money the federal government expends on various programs, services, and debt interest.

Ability-To-Pay Principle

A tax principle that states taxes should be levied based on the taxpayer’s ability to pay, meaning higher-income individuals should pay more in taxes than lower-income individuals.

Government Employment

Employment within governmental bodies, including all levels from local to federal.