In the Long Run When an Increase in the Quantity

question 133

Multiple Choice

In the long run when an increase in the quantity of output increases average total cost,this is called:

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

---

Definitions:

Liabilities

Obligations that a company owes to outside parties, typically consisting of loans and accounts payable.

Transfer Of Ownership

Transfer Of Ownership involves the legal process by which the rights of owning an asset or property are moved from one party to another.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning assets, incurring liabilities, and entering into contracts.

Capital Markets

Capital markets are venues where savings and investments are channeled between suppliers who have capital and those who are in need of capital.