D 10] 21 XYZ Inc. produces 10 cans of alphabet soup and the costs of $10. In the long-run XYZ Inc. switches to producing 15 cans of alphabet soup and the cost is $12, then we know that XYZ Inc. has economies of scale. has diseconomies of scale. has constant returns to scale. has declining returns to scale. D 15 22 15 ABC Tech. has diseconomies of scale. This implies that increasing their scale of production will increase average total costs. increasing their scale of production will decrease average total costs. decreasing their scale of production will decrease average fixed costs. decreasing their scale of production will increase average variable costs. D (5] Ra 23 1 5 Which of the following is an explicit cost? the hourly wage the lead singer would earn working a restaurant shift instead of playing a gig. O the interest lost from depleting the bass players checking account to pay for their manager. the time the drummer spends away from their family when playing a show in a nearby town. O the cost of a new amplifier for the lead guitarist. D 10] #2 24 1 5) If interest rates in the economy went up then implicit cost of depleting saving and explicit cost of borrowing fall. Q implicit cost of depleting saving falls while explicit cost of borrowing rises. implicit cost of depleting saving and explicit cost of borrowing rise. implicit cost of depleting saving rises while explicit cost of borrowing falls. 10] P2 25 15 If there is an increase in explicit cost then all else the same accounting profit will fall but economic profit will rise. O accounting profit and economic profit will rise. accounting profit and economic profit will fall. accounting profit will rise but economic profit will fall