If the Average Total Cost of Producing 20 Sweaters an Hour

question 100

Multiple Choice

If the average total cost of producing 20 sweaters an hour falls when the firm doubles all its inputs, then the

• A) firm moves along its short- run average total cost curve.
• B) short- run average total cost curve shifts upward because all inputs have increased.
• C) long- run average cost curve shifts downward.
• D) firm experiences economies of scale.

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Definitions:

Trade Barriers

Measures implemented by governments to restrict international trade, often aimed at protecting domestic industries.

Primary Currencies

The most widely used and traded currencies in the global foreign exchange markets, such as the US Dollar, Euro, and Japanese Yen.

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A global market for trading currencies against one another, determining the exchange rates.

U.S. Dollar

The official currency of the United States, used as a standard monetary unit in international trade.