Economies of Scale Refer to the Range of Output Over

question 52

Multiple Choice

Economies of scale refer to the range of output over which

• A) marginal cost exceeds average cost.
• B) the long-run average cost falls as output increases.
• C) the marginal product of labor diminishes.
• D) the long-run average cost is less than the short-run average total cost.

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Definitions:

Annual Dividends

The total amount of dividend payments made to shareholders over a year.

Market Value

Market value is the current price at which an asset or service can be bought or sold in an open market.

Retained Earnings

The portion of net income left over for a business after it has paid out dividends to its shareholders, often reinvested into the business.

Cumulative Net Income

The total profit of a company after all expenses and taxes have been deducted, accumulated over a period of time.