Determine Whether Each of the Following Is a Factor Which

question 86

Essay

Determine whether each of the following is a factor which helps to determine the shape of the short-run average cost curve or the long-run average cost curve.
a)Economies of scale.
b)Diminishing returns.
c)Fixed cost.
d)Decreasing returns to scale.
e)Price of labour.

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Definitions:

Beginning-of-month Withdrawals

Refers to funds being taken out of an account at the start of each month, often in the context of automated payment plans or investments.

Nominal Rate

The stated or advertised interest rate on a loan or investment, not accounting for compounding or fees.

Effective Rate

The interest rate on a loan or financial product, adjusted for the effect of compounding over a specified period of time.

Semi-annually Compounded

A method of computing interest in which interest is added to the principal balance twice a year, resulting in compound growth.