If, When a Firm Doubles All Its Inputs, Its Average

question 42

Multiple Choice

If, when a firm doubles all its inputs, its average cost of production increases, then production displays

• A)diminishing returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)declining fixed costs.

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Definitions:

Average Cost

This is the total cost of production divided by the number of goods produced, also known as the cost per unit.

Copyright

A legal right granted to the creator of an original work, providing exclusive control over the work's use and distribution.

Best-Selling Novel

A book that has sold a significant number of copies, making it highly popular and widely read.