Both Economies of Scale and Learning Effects Increase the Efficiency

question 10

True/False

Both economies of scale and learning effects increase the efficiency of resource utilization, but do not affect productivity.

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Definitions:

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a firm to adjust to changes in market demand or production costs.

Short-Run Aggregate-Supply Curve

A graphical representation that shows the relationship between the total production of goods and services and the price level for those goods and services in the short-term.

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a reference point.

Output

The total quantity of goods and services produced by an economic system.