If, When a Firm Doubles All Its Inputs, Its Average

question 76

Multiple Choice

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays

• A)diminishing returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)declining fixed costs.

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Definitions:

Central Processor

A component in the cognitive system or a computer that is responsible for interpreting, processing, and executing instructions.

Paradigm

A typical example or pattern of something; a model or framework.

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Facts, information, and skills acquired through experience or education, the theoretical or practical understanding of a subject.

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