In the Long Run, Firms Reduce Capital Input Under Which

question 37

Multiple Choice

In the long run, firms reduce capital input under which of the following conditions?

• A)Economies of scale
• B)Diseconomies of scale
• C)Constant returns to scale
• D)When average total cost increases with output
• E)When price equals marginal cost

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Definitions:

Eupnea

Normal, good, unlabored breathing.

Eu-

A prefix meaning good, well, advantageous, or normal in the context of medical terminology.

Hypo-

Prefix indicating low, under, beneath, down, or less than normal.

Mega-

A prefix in medical terminology indicating enlargement or one million units.