Long-Run Economies of Scale Exists When the Long-Run Average Cost

question 79

Multiple Choice

Long-run economies of scale exists when the long-run average cost curve:

• A) rises.
• B) remains constant.
• C) falls.
• D) does not exist.

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Definitions:

Cost of Goods Sold

Directly attributable expenses for creating the goods that a company sells, including materials and labor costs.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, highlighting the net profit or loss.

Perpetual Inventory System

An immediate inventory recording technique utilizing computerized point-of-sale systems and enterprise asset management software to document sales or purchases.

Freight In

The cost of transportation or shipping of raw materials or goods into a production facility or warehouse.