A Firm Will Want to Increase Its Scale of Plant

question 104

Multiple Choice

A firm will want to increase its scale of plant if

• A)it is persistently producing on the upward-sloping part of its short-run average total cost curve.
• B)it is persistently producing on the downward-sloping part of its short-run average total cost curve.
• C)it is producing below minimum efficient scale.
• D)marginal cost is below average total cost.
• E)marginal cost is below average variable cost.

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Definitions:

Personal Interests

Individual hobbies, passions, and activities outside one’s professional life that provide personal satisfaction and joy.

Entrepreneurs

Individuals who create, launch, and manage new businesses, often taking on significant financial risks in the hope of profit.

Angel Investor

An affluent individual who provides financial backing for small startups or entrepreneurs, often in exchange for ownership equity.

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An investor who provides capital to startup companies and small businesses with long-term growth potential.