The Portion of the Long-Run Average Cost Curve in Which

question 68

Multiple Choice

The portion of the long-run average cost curve in which economies of scale are experienced shows that as output increases,the

• A) average total cost decreases.
• B) average total cost increases.
• C) marginal cost increases.
• D) marginal cost decreases.
• E) average variable cost is constant and the average fixed cost decreases.

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Definitions:

Demographic Transition Theory

A theory that describes the transition of a society from high birth and death rates to low birth and death rates as part of economic development.

European Population

Refers to the inhabitants of Europe, a continent with diverse cultures, languages, and nations.

Urban Life

It describes the lifestyle, conditions, and characteristics of living in a city or metropolis, including higher population density, diverse cultures, and advanced infrastructure.

Personal Relationships

Interpersonal affiliations or connections between individuals, characterized by emotional or physical intimacy.