Economies of Scale Occur When

question 2

Multiple Choice

Economies of scale occur when

• A)a firm's long-run average total costs fall as it increases the quantity of output it produces.
• B)the marginal product of labor is greater than the average product of labor.
• C)short-run marginal cost falls.
• D)the demand for a firm's output increases.

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Definitions:

Bookkeeping

The systematic recording of financial transactions and maintenance of financial records for a business or individual.