If a Firm's Long-Run Average Cost Curve Is Rising, It

question 117

Multiple Choice

If a firm's long-run average cost curve is rising, it is experiencing:

• A) a constant return to scale.
• B) economies of scale.
• C) diseconomies of scale.
• D) none of these.

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Definitions:

Cash Flow From Operating Activities

The amount of cash generated by a company's regular business operations.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Quick Ratio

A measure of a company's capacity to meet its short-term liabilities with its most liquid assets.

Liquidity Ratio

A financial metric used to determine an entity's ability to pay off its short-term debts with its most liquid assets, indicating financial health.