Barter Is the Practice of Exchanging Products and Services for Other

question 140

Multiple Choice

Barter is the practice of exchanging products and services for other products and services rather than for

• A) value.
• B) ideas.
• C) promises.
• D) tariffs.
• E) money.

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Definitions:

Long-run Average Total Costs

The average cost per unit of output where all inputs, including capital, are variable and the firm has adjusted all inputs to find the lowest average cost.

Long-run Marginal Cost

The change in total cost when producing one additional unit of a product or service in the long term, where all inputs are considered variable.

Economies of Scale

Enterprises gain cost benefits from their operation size, as the cost for each unit produced typically drops when the scale enlarges because fixed expenses are distributed across a greater number of output units.

Efficient Scale

The level of production at which a firm can produce its product at the lowest average cost per unit.