In the Short Run,the Average Total Cost Curve Slopes Upward

question 34

Multiple Choice

In the short run,the average total cost curve slopes upward because of:

• A)economies of scale.
• B)diseconomies of scale.
• C)increasing returns.
• D)diminishing returns.

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Definitions:

Protective Tariff

A tax imposed on imports with the intention of shielding domestic industries from foreign competition by making imported goods more expensive compared to local products.

Freer Trade

describes the reduction of tariffs, quotas, and regulations to allow goods and services to move more easily between countries.

Multinational Treaty

An agreement that is signed by multiple countries, establishing rights and obligations between the parties.

Patent Protection

Legal rights granted to inventors to exclusively make, use, or sell their inventions for a certain period, preventing others from doing so.