If a Firm's Long-Run Average Total Costs Increase as It

question 143

Multiple Choice

If a firm's long-run average total costs increase as it increases its scale of production,the firm is experiencing

• A) economies of scale.
• B) constant returns to scale.
• C) increasing returns from specialization.
• D) diminishing marginal product.
• E) diseconomies of scale.

Recognize challenges and techniques in budgeting, including top-down and participative approaches.

Understand the concept and purpose of a budget in an organization.

Identify the difference between a strategic plan and a financial/budget plan.

Recognize the role of budgets in performance evaluation and cost control.

---

Definitions:

Loanable Funds

The total resources or funds available for borrowing in the financial markets, used for investments and other purposes.

Interest Rate

The cost of borrowing money or the return for investing, typically expressed as a percentage of the principal amount per annum.

Lend

The act of giving something, usually money, to someone with the expectation that it will be returned or repaid, often with interest.

Interest Rates

The expense associated with lending money or the profit from saving it, represented as a percentage of the total amount lent or saved.