If There Are No Fixed Costs in the Long Run,how

question 83

Multiple Choice

If there are no fixed costs in the long run,how can it be said that economies of scale arise from spreading fixed costs over more units of output?

• A) Economies of scale is a short run phenomenon,and so diminishing returns is the root cause of scale economies.
• B) It is instead the cost of quasi-fixed inputs that gets spread over more units of output which drives down average cost in the long run.
• C) Average fixed costs decline continuously as output rises.
• D) Long-run average cost falls because all fixed costs are sunk.

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Definitions:

Prison Violence

Acts of aggression and conflict occurring within prison facilities, involving inmates, and sometimes staff, posing significant challenges to security and rehabilitation.

Penal System

The network of agencies and processes established by governments to manage individuals accused and convicted of crimes, including law enforcement, courts, and correctional institutions.

Recidivism

The tendency of a convicted criminal to reoffend, often used as a measure of the effectiveness of criminal justice systems.

Radical Non-Intervention

A strategy in criminal justice which suggests that refraining from penal intervention in the lives of youths who commit crimes might lead to better outcomes than formal processing and punishment.