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

question 286

Multiple Choice

When long-run average cost decreases as output increases there are definitely

• A) increasing marginal returns.
• B) economies of scale.
• C) Both answers A and B are correct.
• D) Neither answer A nor B is correct.

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Definitions:

Minimizes

The process of finding the lowest value of a function, often relevant in optimization problems.

Residuals

The differences between observed and predicted values in a statistical model or analysis.

Actual Y Values

The observed values in a dataset or experiment that are compared against predicted values to assess model accuracy.

Predicted Values

Predicted values are the estimates obtained from a statistical model, indicating what the model suggests should be observed given specific conditions or inputs.