In the Long Run, When Marginal Cost Is Above Average

question 418

Multiple Choice

In the long run, when marginal cost is above average total cost, the average total cost curve exhibits

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)efficient scale.

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Definitions:

Variable Rate

An interest rate which can change over the period of the loan, credit, or investment depending on market conditions.

Investment Account

An account held at a financial institution that holds securities, cash, and other assets for investment purposes.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, indicating the company's profit.

Earnings

Earnings typically refer to a company's profit, specifically the amount of money it makes from its operations over a certain period.