If a Firm's Long-Run Average Total Curve Shows That It

question 81

Multiple Choice

If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of

• A)diminishing returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)the law of supply.

---

Definitions:

Math Exam

A formal assessment of mathematical knowledge and skills.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.

Performance

The execution of a task or action, often measured against pre-established standards of accuracy, completeness, and speed.

Dissonance Theory

A theory suggesting that inconsistency among beliefs or behaviors causes an uncomfortable psychological tension (dissonance), leading individuals to change their beliefs or behaviors to reduce the dissonance.