It Is Common in Large Beer Breweries for the Long-Run

question 69

Multiple Choice

It is common in large beer breweries for the long-run average total cost to decline as output increases.This indicates that many breweries operate under:

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

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Definitions:

Specialization of Production

The process in which individuals, firms, or countries focus on producing a limited range of goods or services to gain economies of scale or advantages by virtue of unique skills, resources, or technology.

Economic Wealth

The accumulation of valuable resources and assets, including money, property, and investments, that contribute to an individual's or nation's economic power and living standard.

Economic Freedom

The ability of individuals to make their own economic decisions, including the decisions to buy, sell, and produce, with minimal government intervention.

Heritage Foundation

A conservative think tank based in the United States that conducts research and advocacy on public policy issues.