When a Firm Is Experiencing Economies of Scale, Long-Run

question 258

Multiple Choice

When a firm is experiencing economies of scale, long-run

• A)average total cost is minimized.
• B)average total cost is greater than long-run marginal cost.
• C)average total cost is less than long-run marginal cost.
• D)marginal cost is minimized.

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Definitions:

Parity Ratio

A measurement comparing the value of one set of goods, services, or income to another, typically used in agricultural economics or international trade.

Parity Price

A price level that ensures the purchasing power of a commodity is maintained relative to an index or standard, often used in agricultural policy.

Base Period

A specific time period against which economic indicators or financial indexes are measured to assess changes over time.

Index of Prices

A statistical measure that shows changes in the price level of a selected basket of goods and services over time.