Economies of Scale Are Present When

question 97

Multiple Choice

Economies of scale are present when

• A)the LRAC curve slopes downward.
• B)average total cost remains constant as input increases.
• C)average total cost rises as output increases.
• D)the LRAC curve is horizontal.
• E)total fixed cost increases.

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Definitions:

Vocational Off-highway

Pertaining to specialized vehicles used in industries such as construction, mining, and agriculture that operate primarily off public roads.

Linehaul Trucking

The transportation of goods over long distances, typically between cities or major ports, using large trucks.

Less-than-load

A shipping term that refers to cargo that does not require the full space of a truck or shipping container, often abbreviated as LTL.

Broken Back

A term sometimes used in medical or veterinary contexts to describe a fracture or series of fractures along the spine.