The Long-Run Average Cost Curve Slopes Upward If There Are

question 22

Multiple Choice

The long-run average cost curve slopes upward if there are:

• A) some factors without diminishing marginal returns.
• B) diseconomies of scope in the management of multiplant operations.
• C) economies of scale.
• D) diseconomies of scale.
• E) no factors without diminishing marginal returns.

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Definitions:

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.

Circular-flow Diagram

A visual construct of the financial ecosystem, detailing the exchange of dollars between households and firms via markets.