If a Firm Decreases Its Plant Size and Finds That

question 136

Multiple Choice

If a firm decreases its plant size and finds that its long-run average costs have decreased, then

• A)its labour is more productive in a smaller plant.
• B)its diseconomies of scale are less.
• C)the firm should reduce its plant size even more.
• D)the firm is now profitable.

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Definitions:

Nasolacrimal Duct

The passageway that drains tears from the eye into the nasal cavity, allowing for tear drainage.

Lacrimal Fluid

Fluid produced by the lacrimal glands in the eyes, commonly known as tears, which keeps the eyes lubricated.

Nose

A facial organ containing the nostrils and used for breathing and smelling.

Eye's Lens

A transparent structure in the eye that focuses light on the retina to produce clear images.