In the long run a company that produces and sells candy bars incurs total costs of $1,200 when output is 2,400 candy bars and $1,400 when output is 2,900 candy bars. The candy bar company exhibits
a. diseconomies of scale because total cost is rising as output rises.
b. diseconomies of scale because average total cost is rising as output rises.
c. economies of scale because total cost is rising as output rises.
d. economies of scale because average total cost is falling as output rises.
d
You might also like to view...
Which of the following represents positive economics?
a. Policy A is fair. b. Outcome B is the best objective to achieve. c. If policy A is followed, then outcome B results. d. All of these.
If the supply of a good is inelastic, _____.
(A) Producers have diminishing marginal returns of labor. (B) A small increase in price will lead producers to sharply increase their quantity supplied. (C) Producers will increase their quantity supplied in response to sharp drops in the market price. (D) Producers will not change their quantity supplied by much even if the market price doubles.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
If the $/peso exchange rate falls, then so does the value of the peso.
Answer the following statement true (T) or false (F)