Use the Following to Answer Question(s): Long-Run Average Cost

question 197

Multiple Choice

Use the following to answer question(s) : Long-Run Average Cost

-(Exhibit: Long-Run Average Cost) Output per period in the region A to B indicates that a firm is experiencing:

• A) constant returns to scale.
• B) economies of scale.
• C) diseconomies of scale.
• D) constant total cost as output increases.

---

Definitions:

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to present value.

Preferred Dividends

Dividends that are paid out to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.