In the Long Run, When Marginal Cost Is Above Average

question 418

Multiple Choice

In the long run, when marginal cost is above average total cost, the average total cost curve exhibits

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)efficient scale.

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Definitions:

Little Effort

A minimal amount of work or exertion required to achieve something.

Process Information

The act of taking in, interpreting, and making sense of data or stimuli from the environment.

Information-Processing

A cognitive approach that compares the mind to a computer, focusing on how people encode, store, and retrieve information.

Cognitive Developmental

Refers to the process by which individuals acquire and evolve in their capacity to think, reason, and understand the world.