Declining Cost Industries

question 9

Multiple Choice

Declining cost industries

• A) have upward rising AC curves.
• B) have upward rising demand curves.
• C) have ∩-shaped total costs.
• D) have diseconomies of scale.
• E) have marginal cost curves below their average cost curve.

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Definitions:

Cost of Goods Manufactured

The total cost incurred by a company to produce goods within a specified period, including costs related to materials, labor, and manufacturing overhead.

Direct Labor Costs

The salary and benefits awarded to staff members actively participating in the manufacturing of products or provision of services.

Cost of Goods Manufactured

The total production cost of goods that are completed and ready for sale during a specific period.

Raw Materials Purchased

The total cost of all raw materials bought by a company for use in production.