The Golden Age of Prosperity for Productivity in the United

question 56

Multiple Choice

The golden age of prosperity for productivity in the United States was from World War II to 1973,when productivity rose at an average rate of _____ per year.

• A) 2.8%
• B) 2.1%
• C) 5.0%
• D) 1.4%

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Definitions:

Diseconomies of Scale

A situation where, as a firm becomes larger, its costs per unit increase due to inefficiencies that arise from its growth.

Constant Costs

The costs that remain unchanged as the level of output or production increases or decreases.

AVC Curve

A graphical depiction of the average variable costs incurred by a firm in the short run, illustrating how costs vary with output levels.