Economies of Scale Imply That Within Some Range a Firm

question 124

Multiple Choice

Economies of scale imply that within some range a firm can increase the size of operation and

• A) total cost will decrease.
• B) fixed cost will decrease.
• C) average total cost will decrease.
• D) average total cost will increase.
• E) average variable cost will decrease.

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Definitions:

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all human beings share, despite cultural or individual differences.

Republican Institutions

Governance structures and practices based on the principles of republicanism, where the government's authority comes from the people and is exercised by elected representatives.

Constitutional Convention

A formal meeting held to create, revise, or amend a constitution, such as the gathering in 1787 that drafted the United States Constitution.

National Government

The organization through which a nation exercises political authority and conducts government functions.