If a Firm Increases Output and Its Average Total Cost

question 114

True/False

If a firm increases output and its average total cost declines, then the firm is experiencing economies of scale.

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Definitions:

Part-Time Business

A venture or enterprise operated on a less than full-time basis, often alongside another job or personal commitments.

Marginal Cost

The cost added by producing one additional unit of a product or service, focusing on how cost changes with variations in output level.

Marginal Benefit

The increased enjoyment or advantage received from the consumption of one extra item of a good or service.

Economics Grade

A measurement or assessment of a student's understanding and proficiency in the subject of economics, typically given as part of an academic evaluation.