When There Are Economies of Scale

question 42

Multiple Choice

When there are economies of scale,

• A) MC > AC, so cost-output elasticity is greater than AC.
• B) MC < AC, so cost-output elasticity is less than AC.
• C) MC < AC, so cost-output elasticity is greater than 1.
• D) MC < AC, so cost-output elasticity is less than 1.
• E) long-run marginal cost is declining.

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Definitions:

Anticipate

The act of expecting or predicting something to happen in the future.

Pitch

Pitch can refer to the degree of highness or lowness of a tone or sound, often used in the context of music, or it can also mean the act of presenting an idea or product to persuade others.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Dynamic Systems Approach

A theoretical perspective that emphasizes the importance of integrated and changing systems in understanding human development.