If Output Is Increased in the Long Run,average Production Costs

question 10

Multiple Choice

If output is increased in the long run,average production costs in the presence of internal economies of scale will _ ,and in the presence of external economies of scale,will .

• A)increase; remain constant
• B)decrease; remain constant
• C)decrease; decrease
• D)remain constant; increase
• E)increase; decrease

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Definitions:

Maturity Value

The amount to be paid to the holder of a financial instrument at the end of its term or at maturity.

Dollar Amount

A numerical monetary value specified in units of currency, specifically the United States dollar.

Compound-Interest GIC

A Compound-Interest Guaranteed Investment Certificate is a type of investment where the interest earned is reinvested and earns interest itself, over the term of the GIC.

Maturity Value

Maturity Value is the amount payable to an investor at the end of a fixed-term investment, including the principal and the interest earned.