In the Long Run, a Firm Might Experience Rising Average

question 168

Multiple Choice

In the long run, a firm might experience rising average total costs due to

• A) economies of scale.
• B) diseconomies of scale.
• C) the law of supply.
• D) the law of diminishing marginal returns.

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Definitions:

Unbiased Estimator

An unbiased estimator is a statistical estimator that, on average, equals the parameter being estimated, ensuring accuracy over many samples.

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values in a population.

Estimator

A rule or formula that provides an estimate of a population parameter based on sample data.

True Value

True value refers to the actual value of a parameter or statistic in the population, which statistical estimates aim to approximate.