Question
Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If technology and input prices remain the
Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If technology and input prices remain the same and total cost increases to $3,680, what must be the new quantity of output per day under conditions of
a) constant returns to scale
output increases to more than 24
output increases to 24
output increases to less than 24
b) economies of scale
output increases to less than 24
output increases to 24
output increases to more than 24
c) diseconomies of scale
output increases to 24
output increases to more than 24
output increases to less than 24
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