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:

Substitutes

Products or services that can replace or be used in place of another, offering consumers alternative choices.

Demand for Gasoline

The consumer's desire and ability to purchase gasoline at various price points.

Unit Elastic

A situation in economics where a change in the price of a good or service results in a proportional change in the quantity demanded or supplied.

Very Inelastic

Describes a situation where the demand or supply for a good or service is minimally responsive to changes in price.