If a Firm Experiences Gains from Specialization as It Increases

question 35

Multiple Choice

If a firm experiences gains from specialization as it increases its scale of production,we would expect its long-run average cost curve to be

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

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Definitions:

Aging Population

A demographic trend characterized by an increase in the median age of a population, often resulting from declining fertility rates and/or increasing life expectancy.

Fiscal Problems

Financial difficulties faced by a government due to a mismatch between its expenditures and revenues, leading to budget deficits and debt accumulation.

Poverty

The state of being extremely poor, with inadequate access to basic needs such as food, clean water, shelter, and education.

Epidemics

Widespread occurrences of an infectious disease in a community at a particular time, affecting a disproportionately high number of individuals.