If a Firm's Long-Run Average Total Curve Shows That It

question 81

Multiple Choice

If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of

• A)diminishing returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)the law of supply.

---

Definitions:

Midline

An imaginary line that divides the body into equal left and right halves.

Lateral

Pertaining to the side, often used to describe relative position or direction in anatomy and medicine.

Medial

Situated toward the midline of the body or an organ.

Cartilage Degeneration

The breakdown or loss of the smooth cartilage tissue that covers the ends of bones in joints, leading to conditions such as osteoarthritis.