Returns That Occur in the Long Run When an Increase

question 3

Multiple Choice

Returns that occur in the long run when an increase in the quantity of output decreases average total cost are called:

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)minimum average total cost.

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Definitions:

Decreases in Value

A reduction in the worth or price of an asset or commodity.

Foreign Currencies

Money or other forms of legal tender issued by countries other than one's own, used in international trade and finance transactions.

U.S. Exports

Goods and services produced in the United States and sold to other countries, contributing to the national economy.

Dollar-Euro Market

The foreign exchange market where the US dollar and the Euro are traded against each other.