In the Long Run, Firms in Many Industries Often Experience

question 79

Multiple Choice

In the long run, firms in many industries often experience falling average total costs as a result of

• A) gains through trade.
• B) increasing marginal returns.
• C) economies of scale.
• D) lower fixed costs.

---

Definitions:

Calculate

The process of determining something mathematically or computationally, often involving operations such as addition, subtraction, multiplication, and division.

Y-intercept

The location on a graph where a line intersects with the y-axis, showing the dependent variable's value at the point the independent variable equals zero.

Data

Facts and statistics collected together for reference or analysis.

Linear Regression Equation

An equation used to predict the value of a dependent variable based on one or more independent variables, typically in the form y = mx + b.