If a Firm's Long- Run Average Cost Is $4 and When

question 95

Multiple Choice

If a firm's long- run average cost is $4 and when output increases long- run average cost decreases to $3, the firm is experiencing_______ .

• A)economies of scale
• B)constant returns to scale
• C)diseconomies of scale
• D)a shift in its long- run average cost curve

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Definitions:

Asexual Reproduction

A mode of reproduction by which offspring arise from a single organism, inheriting the genes of that parent only, seen in many plants and some animal species.

Vegetative Propagation

A form of asexual reproduction in plants where new individuals are formed without the production of seeds or spores.

Gametes

Reproductive cells (sperm in males and eggs in females) that contain half the genetic information of the parent and can unite with another gamete to form a zygote.

Meiosis

A biological process of cell division that reduces the chromosome number by half, creating four haploid cells, each genetically distinct from the parent cell.