In the Long Run, When an Increase in the Quantity

question 60

Multiple Choice

In the long run, when an increase in the quantity of output decreases average total cost, a firm experiences:

• A)economies of scale.
• B)diseconomies of scale.
• C)constant economies to scale.
• D)minimum average total cost.

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Definitions:

Business Plan

A detailed document outlining the objectives of a business, strategies to achieve them, and the timeframe for success.

Small Business

An independently owned and operated company that is limited in size and in revenue depending on the industry.

Overly Optimistic

A tendency to expect the best possible outcome or overly positive scenarios without adequately considering potential risks and realistic challenges.

Business Plan

A detailed document outlining the strategy, goals, financials, and future projections of a business.