-In the Above Figure, the Long-Run Cost Curve Between Points

question 116

Multiple Choice

-In the above figure, the long-run cost curve between points A and B illustrates

• A) diseconomies of scale.
• B) diminishing marginal product.
• C) constant returns to scale.
• D) economies of scale.

---

Definitions:

Major Wars

Large-scale, high-intensity conflicts between countries or significant groups, often with substantial impacts on societies, economies, and environments.

Deflation

A decrease in the general price level of goods and services in an economy over a period, often indicating reduced consumer demand or excessive supply.

Aggregate Demand Curve

The aggregate demand curve represents the total demand for goods and services in an economy at different price levels, generally showing an inverse relationship between price and output demanded.

Price Level

An index that measures the average changes in prices received by domestic producers for their output, affecting the purchasing power of money.