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

question 135

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.
• E) constant returns to scale.

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Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in response to the Great Depression.

Internationalism

A political principle which advocates for greater political or economic cooperation among nations and peoples across the globe.

Rationing

The controlled distribution of scarce resources, goods, or services, often implemented during shortages to ensure fair and equitable access.

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Products that are purchased for consumption by the average consumer, typically including items like food, clothing, and household products.