Over All Levels of Output, If a Firm's Long-Run Average

question 225

Multiple Choice

Over all levels of output, if a firm's long-run average cost curve declines as output increases, then

• A) small firms and large firms will have identical average costs.
• B) there should be a large number of firms in the industry.
• C) small firms would have lower average costs of production than large firms.
• D) there should be only one firm in the industry.

---

Definitions:

Perceived Environment

Refers to how individuals interpret and understand the environments in which they find themselves, through subjective perception.

Collectivist Culture

Cultures that prioritize the needs and goals of the group over the individual, emphasizing interdependence and community.

Social Harmony

A state of peace, tranquility, and accord within a community where individuals work cooperatively and conflicts are minimized.

Personal Privacy

The concept of keeping one’s personal information, preferences, and life activities confidential from others unless chosen to share.