If Producing More Output Increases Average Cost Then

question 35

Multiple Choice

If producing more output increases average cost then

• A)there are diseconomies of scale.
• B)there are economies of scope.
• C)there are diseconomies of scope.
• D)there are no economies of scale.

Comprehend the significance of external factors, such as technological advancements, in altering production capabilities.

Grasp the definition and components of capital in economic contexts.

Understand the different types of payroll taxes and the distinction between those paid by the employer and those withheld from the employee.

Able to calculate and record the accrual and payment of payroll and payroll taxes properly.

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Definitions:

Services Trade Balance

The difference between exports and imports of services of a country, reflecting whether a country is a net provider or consumer of services internationally.

Adam Smith

An 18th-century economist known as the father of modern economics, famous for his theories on free markets and the 'invisible hand'.

International Trade

The exchange of goods and services across international boundaries.

Hourly Wages

Hourly wages are the amount of money workers are paid for each hour of work, often used to compensate employees in various job types for their labor.