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B. Personal Privacy
C. Policies
D. Projects
Answer: B
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A firm finds that producing 30,000 vases costs $180,000 while producing 40,000 vases costs
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B. diseconomies of scale.
C. diminishing marginal productivity.
Answer: A
Explanation:
Economies of scale imply that average total cost declines as output increases in the long- run. In this example, average total cost falls from $6 to $5 when production increases by 10,000 vases. It could have been caused by increasing marginal productivity if this were the short run, but that is not given as an option.
NEW QUESTION: 3
Refer to the exhibit.
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