When Long- Run Average Cost Increases as Output Increases There

question 79

Multiple Choice

When long- run average cost increases as output increases there are

• A) constant returns to scale.
• B) diseconomies of scale.
• C) economies of scale.
• D) None of the above.

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Definitions:

Lower Prices

A pricing strategy adopted by businesses to attract more customers by offering goods or services at reduced costs compared to competitors.

Group Purchasing

The aggregation of purchasing orders from many buyers so that a volume discount can be obtained.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.

Lower Prices

A strategy or condition where the cost of goods or services is reduced to attract customers or gain a competitive edge in the market.