If a Company Triples Its Output and Its Average Cost

question 139

Multiple Choice

If a company triples its output and its average cost decreases,then the firm is definitely experiencing

• A) diseconomies of scale.
• B) decreasing marginal returns.
• C) increasing marginal returns.
• D) economies of scale.
• E) Both answers C and D are correct.

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Definitions:

Protoplasts

Plant, bacterial, or fungal cells that have had their cell wall removed, exposing the cell membrane and internal contents.

"Eyes"

Sensory organs in animals and humans that are specialized for vision, detecting light and allowing for sight.

Protoplasts

Cells that have had their cell wall removed, exposing the plasma membrane and allowing for study or manipulation of cellular processes.

Runners

A type of plant stem that grows horizontally over the ground and can produce new plants at its nodes, a method of asexual reproduction.