If a Company Is Producing at a Level of Output

question 36

Multiple Choice

If a company is producing at a level of output at which the long-run average-total-cost curve reaches a minimum,the company:

• A)is experiencing economies of scale.
• B)is at minimum efficient scale.
• C)is experiencing increasing returns to scale.
• D)will shut down.
• E)is experiencing diseconomies of scale.

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Definitions:

Performance Rendered

The execution or completion of a task or duty as agreed in a contract or agreement.

Unconscionable Contract

An agreement that is so unfair or oppressive to one party that it is deemed unjust by the legal system.

Grossly Unfair

A situation or action that is extremely unjust or disproportionate, often violating ethical or legal standards.

Illegal Contract

An agreement that is not enforceable by law because it involves actions that are illegal or it violates legal statutes or public policy.