Economies of Scale Occur When the Long-Run Average Cost Curve

question 31

True/False

Economies of scale occur when the long-run average cost curve slopes downward.

---

Definitions:

Interest Rate

The percentage of a sum of money charged for its use, serving as the cost of borrowing or the reward for saving.

Time Preference

The degree to which individuals prioritize current goods and services over future ones.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in finance and investment analysis.

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money, often influencing economic activity.