The Table Given Below Shows the Average Total Cost of Production

question 20

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-A firm gets less efficient as it gets bigger, if it is experiencing:

• A)economies of scale.
• B)constant returns to scale.
• C)increasing returns to factors.
• D)diseconomies of scale.
• E)a period of post war recovery.

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Definitions:

Commodity Swap

A financial agreement where two parties exchange cash flows related to a specific commodity's price.

Short-Term Price Movements

Fluctuations in the price of securities that occur within a brief period, often influenced by market sentiment and news.

Swap Contract

An agreement between two parties to exchange sequences of cash flows over a set period of time, generally used to exchange different types of interest rates or currencies.

Specified Cash Flows

Designated or particular cash movements into or out of a business or investment over a defined period.