Suppose the Average Total Cost of Producing Semiconductors in a Factory

question 107

Multiple Choice

Suppose the average total cost of producing semiconductors in a factory of a particular size declines over time as more semiconductors are produced. This drop in average total cost might best be explained by:

• A) economies of scale.
• B) economies of scope.
• C) learning by doing.
• D) diminishing marginal productivity.

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Definitions:

McCulloch V. Maryland

A landmark Supreme Court case in 1819 that established the principle of national supremacy and the constitutionality of a federal bank.

Necessary And Proper Clause

A provision in the U.S. Constitution granting Congress the power to pass all laws necessary and proper for carrying out its enumerated powers.

Constitution

The fundamental law or set of principles by which a state or organization is governed, outlining the structure of government and the rights of the citizens.

Missouri Compromise

An act of Congress in 1820 admitting Missouri as a slave state and Maine as a free state, maintaining a balance between slave and free states.