In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits
A) diseconomies of scale because total cost is rising as output rises.
B) constant returns to scale because average total cost is constant as output rises.
C) diseconomies of scale because average total cost is rising as output rises.
D) economies of scale because average total cost is falling as output rises.
Correct Answer:
Verified
Q118: Which of the following statements is not
Q119: Constant returns to scale occur when a
Q121: Suppose that a firm's long-run average total
Q122: In the long run, when marginal cost
Q124: In the long run a company that
Q125: Suppose that a firm's long-run average total
Q126: Figure 13-9
The figure below depicts average total
Q127: Figure 13-9
The figure below depicts average total
Q128: Suppose that a firm's long-run average total
Q245: If long-run average total cost decreases as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents