A Downward-Sloping Portion of a Long-Run Average Total Cost Curve

question 161

Multiple Choice

A downward-sloping portion of a long-run average total cost curve is the result of

• A) economies of scale.
• B) diseconomies of scale.
• C) diminishing returns.
• D) the existence of fixed resources.

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Definitions:

Standardized Measure

A tool or instrument used to assess variables that have been uniformly applied across different groups to ensure comparability.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developed during infancy.

Out of Sight

A phrase often referring to something that is not currently visible or present, also used metaphorically to describe something forgotten or not considered.

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