Long-Run Economies of Scale Exist Over the Range of Output

question 159

Multiple Choice

Long-run economies of scale exist over the range of output for which the long-run average cost curve is:

• A) constant.
• B) falling.
• C) rising.
• D) does not exist.

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Definitions:

Cost Differences

The discrepancies in the amount of money required to produce or obtain goods and services between different companies or regions.

Collusion

Collusion is an agreement between competitors to limit competition and manipulate market variables such as prices or output, often in order to increase profit margins at the expense of consumers.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded.

World Markets

The aggregate of all geographical markets where goods, services, and financial assets are traded internationally.