If Long-Run Average Total Cost Decreases as the Quantity of Output

question 38

Multiple Choice

If long-run average total cost decreases as the quantity of output increases, the firm is experiencing

• A)economies of scale.
• B)diseconomies of scale.
• C)coordination problems arising from the large size of the firm.
• D)fixed costs greatly exceeding variable costs.

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Definitions:

Temporal Isolation

A mechanism of reproductive isolation that occurs when two species breed at different times of the day, season, or year, preventing mating.

Habitat Isolation

A form of prezygotic barrier where two species live in different habitats and rarely, if ever, encounter each other.

Mechanical Isolation

an evolutionary mechanism that prevents species from interbreeding due to physical differences in reproductive structures.

Hybrid Inviability

A condition where hybrid offspring fail to develop or reach sexual maturity, reducing gene flow between different species or populations.