If a Firm Enlarges Its Factory Size and Realizes Higher

question 64

Multiple Choice

If a firm enlarges its factory size and realizes higher average (per unit) costs of production then:

• A) it has experienced economies of scale.
• B) it has experienced diseconomies of scale.
• C) it has experienced constant returns to scale.
• D) the long-run average cost curve slopes downward.
• E) the long-run average cost curve shifts upward.

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Definitions:

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Mercenaries

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Castilian Forces

Military units or personnel associated with Castile, a historic region of Spain, particularly during the periods of the Reconquista and the Spanish Empire.

Iberian Peninsula

A peninsula located in the southwest corner of Europe, traditionally divided among Spain, Portugal, Andorra, and a small part of France.