If a Firm Experiences Diseconomies of Scale,its Long-Run Average Cost

question 54

Multiple Choice

If a firm experiences diseconomies of scale,its long-run average cost curve is

• A) upward sloping.
• B) downward sloping.
• C) a vertical line.
• D) a horizontal line.
• E) U-shaped.

Understand the impact of savings rates on productivity growth.

Recognize the role of innovation during the industrial revolution.

Assess the relationship between health care spending and GDP.

Evaluate work hours in relation to productivity and international comparisons.

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Definitions:

Work in Process Inventory

Partially finished goods that are in the process of being converted into a final product, often reflecting the cost of raw materials, labor, and overhead involved up to that point.

Finished Goods Inventory

Refers to the inventory of goods that are completed and ready for sale.

Cost of Goods Manufactured

The total expense incurred in manufacturing goods, including materials, labor, and overhead, up to the point of completion.

Raw Materials

Primary components used to produce or fabricate products.