When a Firm Is Experiencing Diseconomies of Scale, Long-Run

question 40

Multiple Choice

When a firm is experiencing diseconomies of scale, long-run

• A)average total cost is minimized.
• B)average total cost is greater than long-run marginal cost.
• C)average total cost is less than long-run marginal cost.
• D)marginal cost is minimized.

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Definitions:

Population Parameter

A numerical value used as a summary measure for a population (e.g., the population mean, m, the population variance, s2, and the population standard deviation, s).

Type I Error

The error of rejecting H0 when it is true.

Type II Error

The error of accepting H0 when it is false.

Reject

In statistical hypothesis testing, to "reject" means to discard the null hypothesis in favor of the alternative hypothesis based on the evidence provided by the sample data.