Economies of Scale

question 50

Multiple Choice

Economies of scale

• A)Exist in both the short run and the long run.
• B)Explain why average variable and average total costs decline in the short run.
• C)Explain why average total costs decline as output increases in the long run.

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Definitions:

Statement Of Financial Position

A financial statement that shows the assets, liabilities, and equity of an entity at a specific point in time, providing a snapshot of its financial condition.

Statement Of Income

A financial report that shows a company's revenue, expenses, and profits over a specific period, often referred to as a profit and loss statement.

Ownership

The legal right to possess, use, and dispose of property, assets, or an entity.