Returns That Occur in the Long Run When Average Total

question 38

Multiple Choice

Returns that occur in the long run when average total cost does not depend on the quantity of output 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:

Stock Market

A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly held companies take place.

Initial Public Offerings

The process where a private company offers shares of stock to the public for the first time.

Investment

The allocation of resources, usually financial, in expectation of future returns.

Inventory

The total amount of goods and materials held by a business, intended for sale or used in production.