If, When a Firm Doubles All Its Inputs, Its Average

question 76

Multiple Choice

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays

• A)diminishing returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)declining fixed costs.

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Definitions:

Transmission Control System

A system in vehicles that uses electronic sensors, processors, and actuators to control gear shifts and optimize engine performance.

Single ECU

Refers to a vehicle having one Electronic Control Unit responsible for overseeing and managing the engine's performance and other systems.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.