A Firm Experiences ________ When Its ________ as Output Increases

question 47

Multiple Choice

A firm experiences ________ when its ________ as output increases.

• A)economies of scale;long-run average cost curve slopes downward
• B)diseconomies of scale;average total cost curve slopes downward
• C)economies of scale;long-run average cost curve shifts upward
• D)diminishing marginal returns;average total cost curve shifts upward
• E)constant returns to scale;long-run average cost curve shifts upward

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Definitions:

Partnership Agreement

A contract between partners in a business that outlines the terms and conditions of the partnership.

Partnership Dissolution

The process of terminating the legal existence of a partnership entity, which involves winding up its affairs and distributing its assets.

Act of Court

A formal decision, order, or judgment handed down by a court of law.

Operation of Law

Changes in legal rights or status that occur automatically due to established legal rules, without the need for action by the parties involved.