Economies of Scale Refer to

question 214

Multiple Choice

Economies of scale refer to

• A) the point at which marginal cost equals average cost.
• B) the fact that in the long run, fixed costs remain constant as output increases.
• C) the range of output over which the long-run average cost falls as output increases.
• D) a feature of short-run production functions but not long-run production functions.

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Definitions:

Proposition

A pronouncement that indicates a viewpoint or judgment.

Premises

Statements or ideas on which an argument or inference is based or from which a conclusion is drawn.

Conclusion

The final part of something, such as an argument or text, summarizing or deducing the outcomes based on the preceding information.

Direct Observation

A research method involving the direct and unobtrusive observation of individuals or phenomena in their natural setting.