The Table Given Below Shows the Average Total Cost of Production

question 68

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-The long-run average total cost curve is U-shaped because:

• A)a firm initially experiences economies of scale and then diseconomies of scale.
• B)the law of diminishing returns to a factor sets in beyond a certain level of output.
• C)a firm initially experiences diseconomies of scale and then economies of scale.
• D)division of labor keeps labor productivity constant irrespective of expansion or contraction in production.
• E)the efficiency of capital increases over a period of time.

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Definitions:

Middle-Class Customers

Consumers belonging to the middle socioeconomic bracket, typically characterized by average income levels, who may drive demand in certain markets.

Multinational Clothing

Clothing brands and companies that operate and sell their products in multiple countries around the world.

Global Market Segmentation

The process of dividing the global market into smaller groups with similar needs or characteristics to target products or services more effectively.

National Markets

The commercial markets within a specific country, focusing on the dynamics and interactions of buying and selling within that nation's borders.