The Upward-Sloping Portion of a Long-Run Average Total Cost Curve

question 82

Multiple Choice

The upward-sloping portion of a long-run average total cost curve is the result of

• A) economies of scale.
• B) diseconomies of scale.
• C) diminishing returns.
• D) the existence of fixed resources.

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Definitions:

AASB 137

An accounting standard issued by the Australian Accounting Standards Board relating to provisions, contingent liabilities, and contingent assets.

Direct Restructuring Costs

Expenses directly associated with the process of restructuring a business or organizational operations, separate from indirect or incidental costs.

Indirect Restructuring Costs

Costs associated with reorganizing a business that are not directly connected to the physical process of restructuring, such as financial or reputational impacts.

Professional Judgement

The use of professional knowledge and skills to make decisions and solve problems.