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

question 63

Multiple Choice

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

• A) economies of scale.
• B) diseconomies of scale.
• C) constant returns to scale.
• D) none of the above.

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Definitions:

Clayton Act

The federal antitrust law of 1914 that strengthened the Sherman Act by making it illegal for firms to engage in certain specified practices including tying contracts, interlocking directorates, and certain forms of price discrimination.

Monopoly Structure

A market structure characterized by a single seller producing a unique product with no close substitutes, leading to significant control over the market and pricing.

Natural Monopolies

A situation in which a single firm can supply a good or service to an entire market at a lower cost than could two or more firms, due to economies of scale.

Regulated Firms

Companies that are subject to governmental controls and restrictions, typically to ensure fair practices, safety, and compliance with public policies.