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Use the following to answer questions:
Figure: Long-Run and Short-Run Average Cost Curves Use the following to answer questions: Figure: Long-Run and Short-Run Average Cost Curves   -(Figure: Long-Run and Short-Run Average Cost Curves)  Look at the figure Long-Run and Short-Run Average Cost Curves. If a firm is producing at point C on the ATC<sub>2</sub> but anticipates increasing output to 225,000 units in the long run, the firm will build a _____ plant and have _____ of scale. A)  smaller; economies B)  smaller; diseconomies C)  bigger; economies D)  bigger; diseconomies
-(Figure: Long-Run and Short-Run Average Cost Curves) Look at the figure Long-Run and Short-Run Average Cost Curves. If a firm is producing at point C on the ATC2 but anticipates increasing output to 225,000 units in the long run, the firm will build a _____ plant and have _____ of scale.


Definitions:

Market Portfolio

A market portfolio is a theoretical bundle of investments that includes every type of asset available in the world financial market, with each asset weighted by its market capitalization.

Beta

An indicator of how much a stock's price movement varies compared to the general market, signifying its relative risk to the market norm.

Expected Return

A statistical measure of the mean or average return from an investment, considering historical or anticipated performance, often used in financial analysis.

Market Return

The total return of an investment market, comprising both capital gains and dividends or interest, over a given period.

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