If Producing More Output Has No Effect on Average Cost

question 86

Multiple Choice

If producing more output has no effect on average cost then

• A)there are diseconomies of scale.
• B)there are economies of scope.
• C)there are diseconomies of scope.
• D)there are no economies of scale.

---

Definitions:

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Cash

Physical currency such as coins and banknotes or the equivalent in bank balances that can be immediately accessible.

Book Cash

The amount of cash on hand as recorded in the financial records of a company.

Bank Cash

Bank Cash refers to the liquid assets held by a financial institution that is readily available for transactions and immediate withdrawal.