The Decreasing Portion of a Firm's Long Run Average Cost

question 135

Multiple Choice

The decreasing portion of a firm's long run average cost curve is attributable to:

• A) diminishing returns to scale.
• B) increasing marginal cost.
• C) economies of scale.
• D) diseconomies of scale.
• E) constant returns to scale.

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Definitions:

Reliability

The degree to which a product, service, or system operates consistently over time, meeting the expected performance standards without failure.

Ease Of Doing Business

A metric that measures the regulatory environment in a country to determine how conducive it is for starting and operating a local firm.

Convenience

The quality of being able to easily use or access a product or service, enhancing the overall customer experience.

Delivery Status

Refers to the current location and condition of a package in the process of being delivered.