Economies of Scale Yield

question 139

Multiple Choice

Economies of scale yield

• A)declining average cost as output increases
• B)declining marginal cost as output increases
• C)declining total cost as output increases
• D)diminishing average returns as output increases
• E)increasing marginal revenue as output increases

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Definitions:

Deductible Contribution

An eligible contribution to a qualified plan or account that reduces taxable income.

Coverdell Education Savings Account

A savings account that allows money to grow tax-free when the funds are used for education expenses.

AGI

Adjusted Gross Income, which is gross income minus adjustments, serving as the basis for calculating taxable income.

Annuity Contract

A financial product sold by an insurance company that provides guaranteed income over a period of time for a flat or periodic payment.