A Firm Notices That When It Increases Output Beyond an Initial

question 54

Multiple Choice

A firm notices that when it increases output beyond an initial level $Q _ { 1 }$ , average total cost decreases. For this firm, the region of output beyond $Q _ { 1 }$ is characterized by:

• A) economies of scale.
• B) diseconomies of scale.
• C) constant economies of scale.
• D) the minimum efficient scale.

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Definitions:

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash.

Excess Cash

Funds that exceed the necessary operating and investment cash required by a business, often indicating potential for dividends, buybacks, or investments.