Increases in Long-Run Average Cost That Result from Output Increases

question 223

Multiple Choice

Increases in long-run average cost that result from output increases is

• A) the law of diminishing marginal product.
• B) economies of scale.
• C) constant returns to scale.
• D) diseconomies of scale.

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Definitions:

Refrigerators

Appliances used for keeping food and drinks cold, slowing down the spoilage process.

Grains

Seeds of grasses cultivated for food, a staple in many diets around the world, such as wheat, rice, and corn.

Vegetables

Various plant parts consumed by humans as food including leaves, roots, flowers, seeds, and stalks.

Fruits

The seed-bearing structures of flowering plants that are often sweet or sour and consumed as food.