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:

Peritubular Capillaries

Tiny blood vessels that travel alongside nephrons allowing reabsorption and secretion between blood and the inner lumen of the nephron.

Bowman's Capsule

A structure in the kidneys that encases the glomerulus and is involved in the filtration process of blood to form urine.

Glomerulus

A network of capillaries located at the beginning of a nephron in the kidney, crucial for the filtration of blood to form urine.

Nephron

The basic structural and functional unit of the kidney, responsible for filtering blood and producing urine.