When a Firm Is on the Portion of Its Long

question 80

Multiple Choice

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

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

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Definitions:

Markdown

A reduction in the selling price of goods or services, often used as a sales strategy to encourage consumer purchases or to clear older stock.

Mark-up

The difference between the cost of a product or service and its selling price, expressed as a percentage of the cost.

Spoilage

Products or materials that have become unfit for sale or use, often leading to financial loss for a business.

Bruising

Physical damage that appears on the skin or body tissues as a result of blunt impact, characterized by discoloration and swelling.