The U Shape of the Long-Run Average Total Cost Curve

question 262

Multiple Choice

The U shape of the long-run average total cost curve is primarily due to:

• A) technological change.
• B) economies and diseconomies of scale.
• C) increasing and then diminishing returns.
• D) diminishing returns.

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Definitions:

Chlorine

A chemical element with symbol Cl and atomic number 17, known for its extensive use in disinfection and as a bleaching agent.

Copper

A red-orange metal that is a ductile, malleable element with very high thermal and electrical conductivity.

Cobalt

Cobalt is a chemical element with symbol Co and atomic number 27, known for its use in alloys and magnets.

Sulfur

A yellow, nonmetallic element that exhibits a characteristic smell and plays a vital role in the chemical industry.