Economies of Scale Imply That Within Some Range a Firm

question 124

Multiple Choice

Economies of scale imply that within some range a firm can increase the size of operation and

• A) total cost will decrease.
• B) fixed cost will decrease.
• C) average total cost will decrease.
• D) average total cost will increase.
• E) average variable cost will decrease.

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Definitions:

Sprain

A partially torn or overstretched ligament.

Contusion

A Contusion is a bruise resulting from blunt trauma that causes bleeding under the skin without breaking the skin's surface.

Strain

An injury to a muscle or tendon resulting from overstretching or tearing.

Tear

A drop of clear salty liquid secreted by glands in your eyes, often resulting from emotion or irritation.