If a Firm Gets Too Large, It Will Eventually Experience

question 66

True/False

If a firm gets too large, it will eventually experience both diseconomies of scale and an increase in costs associated with the learning-curve effect as cumulative volume of production grows.

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Definitions:

Test Average

The mean score obtained by an individual or group on a series of examinations or tests.

Average Variable Cost

The variable cost per unit of output.

Average Variable Cost

The variable costs associated with production, when divided by the number of units produced, indicate the cost per unit.

Marginal Cost

The cost of producing one additional unit of a good or service, an important concept in economics for determining the optimal level of production.