Economies of Scale Imply That Within Some Range a Firm

question 124

Multiple Choice

Economies of scale imply that within some range a firm can increase the size of operation and

• A) total cost will decrease.
• B) fixed cost will decrease.
• C) average total cost will decrease.
• D) average total cost will increase.
• E) average variable cost will decrease.

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Definitions:

Vitamin D

Fat-soluble vitamin produced from precursor molecules in skin exposed to ultraviolet light; increases calcium and phosphate uptake from the intestines.

Osmoreceptor Cells

Cells that detect changes in the osmotic pressure of the body fluids, contributing to the regulation of the body's water balance.

Plasma Volume

The volume of the plasma component of blood, which is the liquid part of the blood that holds the blood cells in whole blood in suspension.

Hypertension

A medical condition where the blood pressure in the arteries is persistently elevated.