In the Short Run, a Firm Will Eventually Experience Rising

question 164

Multiple Choice

In the short run, a firm will eventually experience rising per-unit costs because of

• A) economies of scale.
• B) diseconomies of scale.
• C) the law of supply.
• D) the law of diminishing returns.

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Definitions:

Maximum Price

The highest price that can be charged or that a consumer is willing to pay for a good or service.

Remote Devices Division

A segment of a company that focuses on the development, manufacturing, or management of remote-controlled devices.

Transmitter Division

A specialized department within a company that focuses on the development and production of transmission systems or devices.

Transfer Price

The fee incurred for items or services shared among divisions or subsidiaries of the same business.