When the Curve That Envelops the Series of Possible Short-Run

question 75

Multiple Choice

When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are:

• A) economies of scale.
• B) diseconomies of scale.
• C) constant returns to scale.
• D) diminishing returns.

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Definitions:

Ketone

An organic compound characterized by a carbonyl group bonded to two other carbon atoms; important in organic chemistry and biology.

Trans-2-Methoxycyclohexanol

A compound featuring a cyclohexane ring with a methoxy group and a hydroxyl group in a trans configuration relative to each other.

Cyclohexanone

A six-membered cyclic ketone, used as a solvent and in the synthesis of nylon and other polymers.

1,2-Halohydrin

A compound containing a halogen and a hydroxyl group on adjacent carbon atoms, typically formed by the halogen addition to alkenes.