In the Long Run,if 1,000 Units Are Produced at a Cost

question 100

Multiple Choice

In the long run,if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200,then over this range of output there are

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

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Definitions:

Constant-cost Industry

An industry in which the input prices do not change as the industry's output changes.

Competitive Market

A market structure where multiple firms offer similar or identical products or services, and no single firm can significantly influence market prices.

Cost Curves

Graphical representations of the costs associated with producing varying quantities of output, illustrating concepts like marginal and average cost.

Purely Competitive Industries

Industries in which many firms sell identical products to many buyers and no single seller can influence the market price.