Economies of Scale and Diseconomies of Scale Explain

question 231

Multiple Choice

Economies of scale and diseconomies of scale explain

• A) cost behavior in the short run.
• B) profit maximization in the long run.
• C) the U-shape of the long-run average cost curve.
• D) the U-shape of the short-run average total cost curve.
• E) the U-shape of the marginal cost curves.

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Definitions:

Type of Earnings

Variations in the profits generated by a company, often categorized based on origin, such as operating or non-operating earnings.

Federal Income Taxes

Taxes levied by the government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future date; it is a type of liability on the balance sheet.

Bond Payable

A long-term liability representing borrowed funds that the company is obligated to repay to bondholders at a specified future date.