An Increase in Long-Run Average Costs Resulting from Increases in Output

question 258

Multiple Choice

An increase in long-run average costs resulting from increases in output is

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

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Definitions:

Cohesion

The action or fact of forming a united whole, often referring to the unity among members of a group or the sticking together of particles within a substance.

Explosive Growth

Refers to a rapid and substantial increase in the size or value of something, often used to describe fast-growing companies or economies.

Senior Management

The highest level of managers within an organization, responsible for setting strategic goals and making crucial business decisions.

Expansion Funding

Capital raised to support the growth initiatives of a business, which may include entering new markets or increasing production capacity.