Economies of Scale Occur When

question 132

Multiple Choice

Economies of scale occur when

• A)long-run average total costs rise as output increases.
• B)long-run average total costs fall as output increases.
• C)average fixed costs are falling.
• D)average fixed costs are constant.

---

Definitions:

Total Variation

The overall measure of variability within a dataset, including both the systematic and random variation.

Independent Variables

Variables in an experiment or model that are manipulated or categorized to observe their impact on dependent variables.

Observations

Data points or recorded measures of variables obtained during an experiment or survey.

SSE

The sum of squares due to error, a measure of the discrepancy between the data and an estimation model.