In the long run Firm A incurs total costs of $1,200 when output is 30 units and $1,600 when output is 40 units. Firm A exhibits_________.
A: constant returns to scale because average total cost is constant as output rises
B: diseconomies of scale because total cost is rising as output rises
C: economies of scale because average total cost is falling as output rises
D: diseconomies of scale because average total cost is rising as output rises
A: constant returns to scale because average total cost is constant as output rises
B: diseconomies of scale because total cost is rising as output rises
C: economies of scale because average total cost is falling as output rises
D: diseconomies of scale because average total cost is rising as output rises
举一反三
- Average variable cost and average total costs get closer together as output increases because:
- When a factory is operating in the short run, A: it cannot alter variable costs. B: total cost and variable cost are usually the same. C: average fixed cost rises as output increases. D: it cannot adjust the quantity of fixed inputs.
- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.
- Which of the following is true at the quantity of output where average total cost has reached its minimum level?
- As output increases, total cost also increases. Therefore: