Economies of Scale Are Achieved Is the Long- Run Average

question 11

Multiple Choice

Economies of scale are achieved is the long- run average cost curve _______when output_______ .

• A)falls; falls
• B)rises; rises
• C)falls; rises
• D)rises; remains constant

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Definitions:

Salvage Value

The calculated resale worth of an asset at the close of its efficient lifespan.

Depreciation

The allocation process of a tangible asset's cost over the period it is useful.

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly in its early years.

Salvage Value

The predicted residual value of an asset upon reaching the end of its practical lifespan.