When a fiRm Experiences Economies of Scale, _____

question 55

Multiple Choice

When a firm experiences economies of scale, _____.

• A) its marginal cost of production increases with every additional unit of output that is produced
• B) its long run average costs decrease as output increases
• C) its fixed cost curve becomes horizontal
• D) its output increases at a slower rate than the increase in inputs

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Definitions:

Urgent

A situation or matter requiring immediate action or attention.

Social Network

Platforms or websites that enable users to create and share content or to participate in social networking, connecting individuals with shared interests or activities.

Primary Reason

The main or most important cause or motive behind an action or situation.

Interaction

The process of two or more entities or individuals engaging with each other, exchanging information or affecting each other's actions.