When a Firm Is on the Portion of Its Long

question 12

Multiple Choice

When a firm is on the portion of its long run ATC curve that slopes upward,it is experiencing:

• A)diseconomies of scale.
• B)economies of scale.
• C)constant returns to scale.
• D)Any of these is possible.

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Definitions:

Cost Basis

The original value of an asset for tax purposes, typically the purchase price, adjusted for stock splits, dividends, and return of capital distributions, used to calculate capital gains or losses upon sale.

Appraisal Value

an estimated market value of an asset, typically determined by a professional appraiser based on condition, market trends, and other factors.

Purchase

The act of acquiring goods or services, often involving a legal transaction.

Note Payable

A written promise to pay a specific amount of money, usually including interest, by a certain date.