When There Are Economies of Scale in the Production of a Product

question 120

Multiple Choice

When there are economies of scale in the production of a product, the long-run average total cost curve

• A)increases as output increases.
• B)sometimes increases and sometimes decreases as output increases.
• C)does not change as output increases.
• D)declines as output increases.
• E)is horizontal.

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Definitions:

Machine Adjustments

The act of making modifications or fine-tunings to machinery or equipment to ensure optimal performance and efficiency.

Offshoring

The practice of relocating business processes or services to another country, often to leverage cost advantages or access specialized expertise not available domestically.

Continuing Education

Ongoing learning activities aimed at personal development, professional growth, or maintaining professional licenses and certifications.

Ethical Problem

A situation that presents a moral dilemma, requiring an individual to choose between actions that are evaluated as right or wrong.