In the Long Run When Average Total Cost Does Not

question 26

Multiple Choice

In the long run when average total cost does not depend on the quantity of output,this is called:

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

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Definitions:

Future Value

The value of an investment at a specific future date, considering compound interest or returns.

Interest Rate

The cost of borrowing money or the compensation for the service and risk of lending money, expressed as a percentage of the principal loan amount.

Cash Flows

The movement of funds into and out of a business, project, or financial product, reflecting operational, investment, and financing activities.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.