A Decrease in Long-Run Average Costs Resulting from Decreases in Output

question 340

Multiple Choice

A decrease in long-run average costs resulting from decreases in output is

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

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Definitions:

Genetic Engineering

The modification of an organism's characteristics by manipulating its genetic material, often to include traits that do not occur naturally.

Social Inequality

The unequal distribution of resources, opportunities, and privileges among individuals or groups in a society.

Pastoral Societies

Are those in which people domesticate cattle, camels, pigs, goats, sheep, horses, and reindeer. Such societies first emerged about 10,000 years ago. Domesticating animals increases the food supply and makes it more dependable. This increases average settlement size and permanence, the division of labor, productivity, and inequality above the levels typical of foraging societies.

Domesticate

To adapt plants or animals from the wild for human use, modifying them for coexistence with humans.