The Percentage of U

question 19

Multiple Choice

The percentage of U.S. residents living in rural settings is about:

• A) 5%
• B) 15%
• C) 25%
• D) 40%

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Definitions:

Diseconomies of Scale

A situation where as a firm grows larger, the costs per unit increase, due to factors like coordination and operational inefficiencies.

Diminishing Returns

A principle stating that adding more of one factor of production, while holding others constant, will at some point yield lower incremental per-unit returns.

Short Run

A time period during which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Average Total Cost Curve

A graphical representation showing the average total cost of producing various output levels, typically U-shaped due to economies and diseconomies of scale.