-In 1939 the U

question 228

Multiple Choice

-In 1939 the U.S.economy was operating at point _______.

• A)A
• B)B
• C)C
• D)D

---

Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation and output increases.

Diseconomies of Scale

The phenomenon when a firm experiences increased costs per unit of output due to inefficiencies associated with scale of production, contrary to economies of scale.

Long-run ATC

Referring to the average total cost of production when all inputs, including capital, are variable over a longer period.

Average Fixed Costs

When the production expenses that stay uniform, regardless of production levels, are divided by the number of goods produced.