If Production Displays Economies of Scale, the Long-Run Average Cost

question 104

Multiple Choice

If production displays economies of scale, the long-run average cost curve is

• A)above the short-run average total cost curve.
• B)downward sloping.
• C)upward sloping.
• D)below the long-run marginal cost curve.

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Definitions:

Slope

In mathematics, the slope defines the steepness and direction of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Multiple Correlation

A mathematical method used to evaluate how strong the association is between one dependent variable and multiple independent variables.

Criterion Variables

The dependent variables in an experiment or study that are affected by other variables and are used to evaluate outcomes.

Predictor Variable

Variable in a correlational research study used to predict a criterion variable.