The Table Given Below Shows the Average Total Cost of Production

question 98

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-Diseconomies of scale:

• A)occur only in the short run.
• B)occur when at least one resource is fixed and unit costs decrease as the quantity of production increases.
• C)occur when at least one resource is fixed and unit costs increase as the quantity of production increases.
• D)are represented by the upward-sloping portion of the short run average total cost curve.
• E)occur when all resources are variable and unit costs increase as the quantity of production increases.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Price Level

A composite measure reflecting the prices of all goods and services in the economy relative to prices in a base year.

Consumer Spending

The total expenditure by households on goods and services within a certain period of time, a primary engine of economic activity.

Flow Variable

A flow variable is an economic measure that represents a movement or quantity that is reported per unit of time, such as income per year or spending per month.