If Average Costs of Production Decline with Increases in Output

question 22

Multiple Choice

If average costs of production decline with increases in output for a particular firm:

• A)many small firms will be more efficient than a single large firm.
• B)one large producer will be more efficient than many small producers.
• C)product diversification is necessary to spread the overhead.
• D)diseconomies of scale become significant as output increases.
• E)the variable cost of production must exceed the fixed costs.

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Definitions:

1950s

A decade marked by post-World War II prosperity, the beginning of the Cold War, and significant cultural and social changes in many parts of the world.

Truman

Truman refers to Harry S. Truman, the 33rd President of the United States, who served from 1945 to 1953, known for ending World War II by authorizing the use of atomic bombs against Japan.

Historians

Scholars who study and write about the past, interpreting historical sources and events.

Nation's Presidents

The elected leaders who have served as the head of state and government in a country's history.