The Manager of HDG Computers Reports That If Output Expands

question 33

Multiple Choice

The manager of HDG Computers reports that if output expands in the long run then average costs will rise.This is an example of

• A) economies of scale.
• B) diseconomies of scale.
• C) minimum efficient scale.
• D) constant returns to scale.

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Definitions:

Germany

A country in Central Europe known for its rich history, cultural heritage, and economic prowess.

Production

The process of creating goods or services using inputs such as labor, raw materials, and machinery.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to utilize resources in a particular way.

Germany

A country in Central Europe known for its rich history, technological innovations, and economic power.