The Decreasing Portion of a Firm's Long Run Average Cost

question 112

Multiple Choice

The decreasing portion of a firm's long run average cost curve is attributable to:

• A) diminishing returns to scale.
• B) increasing marginal cost.
• C) economies of scale.
• D) diseconomies of scale.

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Definitions:

Executive Officers

High-ranking executives who are responsible for managing the operations and resources of a company, making major corporate decisions, and ensuring the company's operational success.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Prior Period Adjustment

An accounting entry made to correct errors that were made in previous financial reporting periods.