Economies of Scale

question 39

Multiple Choice

Economies of scale

• A)Exist in both the short run and the long run.
• B)Explain why average variable and average total costs decline in the short run.
• C)Explain why average total costs decline as output increases in the long run.
• D)Explain why average total costs increase as output increases in the long run.

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Definitions:

Prosthesis

A device designed to replace a missing part of the body or to add functionality, such as a limb or dental implant.

Air Embolism

Air Embolism is the pathological presence of air in the vascular system, which can obstruct blood flow and cause serious and potentially fatal complications.

Transfusion

The process of transferring blood or blood-based products from one person into the circulatory system of another.

Cat Bite

A puncture wound or laceration caused by the teeth of a cat, potentially leading to infection due to bacteria from the cat's mouth.