-When Long-Run Average Cost Remains Constant as Output Increases There

question 301

Multiple Choice

-When long-run average cost remains constant as output increases there are constant

• A) marginal returns.
• B) returns to scale.
• C) economies of scale.
• D) diseconomies of scale.

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Definitions:

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Leverage Ratios

Financial metrics used to assess a company's ability to meet its financial obligations, with a focus on its use of debt.

Asset Management Ratio

Asset Management Ratio is a financial metric that assesses how effectively an organization is managing its assets to generate revenue, including turnover ratios for inventory, receivables, and fixed assets.

Economic Order Quantity

The amount of inventory a company should order to minimize its total inventory costs, including holding and ordering costs.