Economies of Scale Exist Whenever

question 105

Multiple Choice

Economies of scale exist whenever:

• A) average total costs decline as output increases.
• B) average total costs increase as output increases.
• C) average total costs are stationary as output increases.
• D) average total costs increase as output increases and average total costs are stationary as output increases.

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Definitions:

Genetic Drift

A mechanism of evolution that involves random changes in the frequency of alleles within a population over time, not necessarily driven by natural selection.

Allele Frequencies

The proportionate occurrence of alleles within a population's gene pool, indicating genetic diversity and evolution trends.

Allele Frequency

The proportion of all copies of a particular gene in a population that are of a given allele variety.

Stabilizing Selection

Natural selection acting to promote stability rather than change in a population's gene pool.