If in the Long Run, a Firm Doubles Its Output

question 94

Multiple Choice

If in the long run, a firm doubles its output and its average cost falls as a result:

• A)the firm is encountering diminishing returns.
• B)technological progress must have occurred.
• C)the firm is encountering economies of scale
• D)it must be a natural monopoly.
• E)none of the above need be true.

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Definitions:

Elements

Fundamental components or essential parts that make up a whole system, substance, or compound.

Organisational Culture

The set of underlying beliefs, values, practices, and social behaviors that characterizes an organization and influences its members' behavior and attitudes.

Importance

A measure of significance or relevance that a particular concept, object, or action holds in comparison to others.

Ethnic Subcultures

Subgroups within a larger culture, characterized by distinct ethnic identities, heritage, traditions, and sometimes languages.