It Is Common in Large Breweries for the Long-Run Average

question 231

Multiple Choice

It is common in large breweries for the long-run average total cost to decline as output increases.This indicates that many breweries operate with:

• A)diseconomies of scale.
• B)diminishing marginal returns.
• C)economies of scale.
• D)constant returns to scale.

---

Definitions:

Tradeoff

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Benefit

An advantage or profit gained from something.

Sensory Organs

Sensory organs are specialized parts of the body that receive and process sensory information, enabling perception of sight, sound, smell, taste, and touch.

High Frequency

Pertaining to or involving very short intervals of time or occurring at a rapid rate.