If Output Is Increased in the Long Run, Average Production

question 33

Multiple Choice

If output is increased in the long run, average production costs in the presence of internal economies of scale will ________, and in the presence of external economies of scale, will ________.

• A) increase; decrease
• B) increase; remain constant
• C) remain constant; increase
• D) decrease; decrease
• E) decrease; remain constant

Understand and apply the Sharpe ratio to evaluate investment performance.

Describe and apply return on investment (ROI) concepts to assess business performance.

Use statistical and financial functions in software (e.g., Excel or PHStat) to analyze investment and financing options.

Understand the fundamental concepts of debits and credits in accounting.

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Definitions:

Evaluative Criteria

The standards and specifications that consumers use to compare different products and brands when making purchasing decisions.

Family Dentist

A family dentist specializes in providing comprehensive dental care for individuals of all ages within a family, focusing on a wide range of dental services.

Consumers

Individuals who purchase goods and services for personal use.

Universal Set

In mathematics, it is the set that contains all objects or elements under consideration, typically within a particular discussion or problem.