When Long-Run Average Cost Increases as Output Increases There Are

question 63

Multiple Choice

When long-run average cost increases as output increases there are

• A) economies of scale.
• B) diseconomies of scale.
• C) constant returns to scale.
• D) none of the above.

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Definitions:

Loan

An amount of money that is lent to someone, which is expected to be paid back with interest.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.

Months

Units of time into which a year is divided, normally consisting of 28 to 31 days.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.