Because There Are Very Significant Economies of Scale Involved in Making

question 57

Multiple Choice

Because there are very significant economies of scale involved in making flat screen television sets in a competitive market, the price of flat screen TVs will:

• A) fall as output expands because long-run average total costs are lower for higher quantities.
• B) rise because the long run average total cost curve is upward-sloping over the entire range of output.
• C) rise because of the combination of stronger demand and higher production costs.
• D) stay exactly the same regardless of any shifts in the demand curve.

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Definitions:

Alveoli

Tiny air sacs within the lungs where gas exchange of oxygen and carbon dioxide occurs.

Bronchioles

Small passages in the lungs that connect the bronchi to the alveoli, facilitating the transfer of oxygen and carbon dioxide.

Nasal Cavity

The large air-filled space behind the nose involved in respiration and filtering, warming, and moistening incoming air.

Glottis

The part of the larynx consisting of the vocal cords and the slit-like opening between them, involved in breathing, producing sound, and protecting the trachea against food aspiration.