When There Are Diseconomies of Scale in Production, _____

question 14

Multiple Choice

When there are diseconomies of scale in production, _____.

• A)long-run average total cost declines as output expands
• B)long-run average total cost increases as output expands
• C)marginal cost decreases as output expands
• D)marginal cost decreases as output expands.
• E)social marginal cost declines as the level of output increases

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Definitions:

M2

A measure of the money supply that includes cash, checking deposits, and easily convertible near money.

Monetary Policy

The method used by a country's monetary authority to regulate the amount of money in circulation, typically aiming at a specific inflation or interest rate to promote economic stability and expansion.

Lender Of Last Resort

An institution, typically a country's central bank, that offers loans to banks or other financial institutions that are experiencing financial difficulty or are considered highly risky.

Open-Market Purchase

The buying of government securities by the central bank from the market to increase the money supply and decrease the interest rate.