The U Shape of the Long-Run Average Total Cost Curve

question 322

Multiple Choice

The U shape of the long-run average total cost curve is primarily due to:

• A) technological change.
• B) economies and diseconomies of scale.
• C) fixed costs.
• D) diminishing returns.

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Definitions:

Withdrawal

Withdrawal involves the act of removing oneself or ceasing to participate in an activity, agreement, or other commitments.

Partnership

A sanctioned form of business where partners collectively manage the enterprise and split the financial gains.

Contracts

Contracts that engage two or more persons in binding commitments recognized and updatable through legal proceedings.

RUPA

The Revised Uniform Partnership Act, a set of laws adopted by some states to govern the operation of partnerships.