A Firm Encountering Economies of Scale Over Some Range of Output

question 90

Multiple Choice

A firm encountering economies of scale over some range of output will have a

• A)rising long-run average cost curve.
• B)falling long-run average cost curve.
• C)flat long-run average cost curve.
• D)rising, then falling, then rising long-run average cost curve.

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Definitions:

5Ss

A Lean production checklist.

Lean Production

An organized approach to reducing waste in a production system while maintaining output levels.

Waste Reduction

The process of minimizing waste generation by using fewer resources and recycling or reusing materials whenever possible.

Inventory

Items or products that are held by a business for the purpose of sale or production, including raw materials, work in progress, and finished goods.