The Effect of Diminishing Marginal Returns Outweighing the Effect of Spreading

question 147

Multiple Choice

The effect of diminishing marginal returns outweighing the effect of spreading out the fixed costs is illustrated by the ________ average cost curve ________.

• A) long-run; decreasing
• B) long-run; increasing
• C) short-run; decreasing
• D) short-run; increasing

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Definitions:

Confidence Interval

A statistical range, derived from sample data, that is likely to contain the true population parameter with a specified level of confidence.

Sample Size

The number of observations or data points collected in a sample.

Variable

An element, feature, or factor that is liable to vary or change.

Confidence Interval

A gamut of values, arising from sample statistic evaluation, with a high likelihood of encompassing the value of a mysterious population parameter.