When Long-Run Average Cost Decreases as Output Increases, There Are

question 456

Multiple Choice

When long-run average cost decreases as output increases, there are definitely I. increasing marginal returns.
II) economies of scale.

• A) only I
• B) only II
• C) both I and II
• D) neither I nor II

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Definitions:

Incorporated

The process of legally declaring a business as a corporation, which is recognized as a separate entity from its owners.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.

Owners

Individuals or entities that hold legal title and the rights of possession and use of property or goods.

Not-For-Profit Corporations

Organizations that use their surplus revenues to achieve their goals rather than distributing them as profit or dividends.