In the Long Run, When Average Total Cost Does Not

question 85

Multiple Choice

In the long run, when average total cost does not depend on the quantity of output, 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:

Income

The monetary payment received for work or through investments, including wages, salaries, or dividends.

Consumer Equilibrium

A condition where a consumer has allocated their income in a way that maximizes their utility, given their budget constraints and the prices of goods and services.

Utility

In economics, the total satisfaction received from consuming a good or service.

Income

Earnings received by a person or entity, typically through work, investments, or business ventures, over a specified period.