When There Are Economies of Scale in Production

question 194

Multiple Choice

When there are economies 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 increases as output expands.
• D) the marginal product of an input diminishes with increased utilization.

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Definitions:

Sample Data

Data collected or selected from a larger population, used in statistical analysis to make inferences about the population.

Variance

A statistical measurement of the spread between numbers in a dataset, indicating how much they differ from the mean of the set.

Population

The entire group of individuals or instances about whom we wish to make conclusions in a statistical study.

Standard Deviation

A statistical index that signifies the distribution of data points around the mean of a dataset.