If a Firm Has Lower Costs Per Unit as It

question 26

Multiple Choice

If a firm has lower costs per unit as it increases production in the long run, this is an example of:

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)increasing opportunity costs.
• D)scale reduction.

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Definitions:

Pressure Switch

A device that activates or deactivates an electrical contact based on changes in pressure.

Thermocouple

A sensor used for measuring temperature, made from two different conductors that generate a voltage, proportional to a temperature difference.

Turbine Flow Meter

A turbine flow meter is a device used to measure the flow rate of a fluid within a pipe, utilizing a turbine that rotates with the flow of the fluid.

Strain Gauge Load Cell

A strain gauge load cell is a device used to measure force or load by converting the deformation (strain) of a material into an electrical signal.