Economies of Scale

question 454

Multiple Choice

Economies of scale

• A) lead to rising long-run average costs as output increases.
• B) occur if output more than doubles when all inputs are doubled.
• C) occur if output less than doubles when all inputs are doubled.
• D) occur when management complexity brings rising average cost.

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Definitions:

Excise Tax

A tax imposed on specific goods, such as tobacco and alcohol, usually aimed at reducing consumption of these goods or generating revenue.

Supply Curves

A graphical representation showing the relationship between the price of a good and the amount of it that producers are willing to supply.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of products like gasoline, alcohol, and tobacco.