As Output Increases,economies of Scale Occur When the

question 263

Multiple Choice

As output increases,economies of scale occur when the

• A) long-run average cost increases.
• B) long-run average cost decreases.
• C) short-run average total cost decreases.
• D) long-run average cost stays constant.
• E) long-run fixed cost decreases.

---

Definitions:

Unreasonable

Not based on or acting according to reason or sound judgement; exceeding the bounds of acceptability or fairness.

Legally Binding Contract

An agreement between parties that is enforceable by law, requiring all involved to fulfill their contractual obligations.

Agreement

A mutual understanding or arrangement between two or more parties, often legally binding, regarding their rights and duties.

Guarantee

A legal commitment to assume responsibility for another's performance, such as repaying a loan or fulfilling a contract obligation.