If the Long-Run Average Total Cost Curve for a Firm

question 383

Multiple Choice

If the long-run average total cost curve for a firm is horizontal in the relevant range of production, then it indicates that there

• A)is a minimum efficient scale.
• B)are constant returns to scale.
• C)are diseconomies of scale.
• D)are economies of scale.

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Definitions:

Chunking

Using working memory to organize information into meaningful units to make it easier to remember.

Social Security

A government program designed to provide financial assistance to individuals during retirement, disability, or other qualifying circumstances.

Dual Coding

A theory in cognitive psychology suggesting that information can be remembered in both verbal and visual forms, enhancing memory and learning.

Maintenance Rehearsal

A cognitive process that involves repeatedly verbalizing or thinking about a piece of information to keep it in short-term memory longer.