Managers of a firm in which diseconomies of scale are taking place should

1. Managers of a firm in which diseconomies of scale are taking place should:a. reduce the scale of production in order to cut back on average total costb. reduce worker’s salaries in order to reduce costc. increase the amount of inputs used in the production processd. lower the prices of their products in the market to offset competition 8. In the long-run the desired plant size for a firm will be the one that has:a. the largest capacity of producing the maximum amount of outputb. largest capacity of producing output at lowest fixed costc. the lowest average fixed costd. minimum average total cost of producing the desired target level of output 12. The breakeven point of a firm occurs at the level of output wherea. marginal revenue equals marginal costb. total revenue equals total costc. marginal cost equals average variable costd. price equals marginal cost 19. If the fixed cost of producing a product is $1,500 and the price is $10 with an average variable cost of$5, the breakeven output level is:a. $100b. $200c. $300d. $15021. Average total costs is minimum when:a. marginal costs is greater than average total costsb. marginal cost is decliningc. average cost equals marginal costd. average total cost is greater than marginal cost 22. The percentage change in profits that occurs from a one percent change in sales is known as:a. cost elasticityb. output elasticityc. sales elasticityd. degree of operating leverage