Economies of Scale Are Present When

question 97

Multiple Choice

Economies of scale are present when

• A)the LRAC curve slopes downward.
• B)average total cost remains constant as input increases.
• C)average total cost rises as output increases.
• D)the LRAC curve is horizontal.
• E)total fixed cost increases.

---

Definitions:

Linear Models

Mathematical models that assume a linear relationship between two or more variables, used to predict the value of a variable based on the value of another.

Risk Analysis Software

Computer programs used to identify, assess, and prioritize risks in projects or investments.

Optimization Models

Mathematical techniques used to find the best possible solution or outcome in situations with various constraints and objectives.

Crystal Ball

A metaphor often used to describe the attempt to predict or foresee future events or outcomes, especially in uncertain situations.