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:

Seriation

The cognitive ability to arrange objects in order according to size, shape, or any other characteristic.

Decentration

The ability to focus on multiple attributes of an object or situation rather than being locked onto a single aspect.

Mainstreaming

The practice of integrating children with disabilities or special needs into regular educational settings.

Mildly Disabled

Describes individuals with disabilities that moderately affect their daily activities or abilities but can often manage with minimal accommodations.