A Firm That Has Lower Costs Per Unit as It

question 105

Multiple Choice

A firm that has lower costs per unit as it increases production in the long run has:

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)increasing opportunity costs.
• D)scale reduction.

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Definitions:

Concrete

Pertaining to or characterized by material objects, not abstract; tangible, real, or specific.

Bookkeeping

The systematic recording, organizing, and maintaining of financial transactions for an individual or an organization.

Schema Change

The modification or updating of cognitive frameworks or mental structures that are used to organize information, usually in response to new information or experiences.