When Long-Run Average Costs Decrease as a Result of Industry

question 220

Multiple Choice

When long-run average costs decrease as a result of industry growth, there are

• A) internal economies.
• B) internal diseconomies.
• C) external economies.
• D) external diseconomies.

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Definitions:

Security

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Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, aimed at protecting investors from fraud.

Solicitation of Proxies

The process by which shareholders are asked to delegate their voting power to representatives to vote on their behalf at shareholder meetings.

Section 12

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