When an Increase in the Firm's Output Reduces Its Long-Run

question 20

Multiple Choice

When an increase in the firm's output reduces its long-run average total cost,it achieves _____ scale.

• A)economies of
• B)diseconomies of
• C)constant returns to
• D)variable returns to

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Definitions:

Average Rate

A term used in various contexts to denote the mean value of a set of rates, such as interest rates or exchange rates, calculated over a specified period or set of instances.

Regular Rate

Typically refers to the normal hourly rate paid for standard work hours to an employee, not including overtime or bonuses.

Rate of Pay

The amount of money a person is paid per unit of time, such as an hourly wage or annual salary.

Hourly Pay Rate

The compensation given for each hour of labor.