Economies of Scale Are Relevant to the __________, Whereas the Law

question 74

Multiple Choice

Economies of scale are relevant to the __________, whereas the law of diminishing marginal returns is relevant to the __________.

• A)long run; short run
• B)short run; long run
• C)industry; firm
• D)firm; industry
• E)firm in the short run; industry in the long run

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Definitions:

Dish Soap

A detergent used for cleaning dishes and utensils, which removes grease and food residues.

Consumer Equilibrium

A state where an individual allocates their income in a way that maximizes their utility, considering the prices of goods and services and their personal preferences.

Indifference Curve

A graphical representation used in microeconomics to show combinations of goods among which a consumer is indifferent, reflecting their preferences.

Consumer Equilibrium

The point at which an individual consumer achieves the highest level of satisfaction, given their income constraints and the prices of goods and services.