If a Firm's Average Total Costs Decrease as It Increases

question 11

Multiple Choice

If a firm's average total costs decrease as it increases its scale of production,the firm is experiencing

• A) economies of scale.
• B) diseconomies of scale.
• C) increasing returns from specialization.
• D) diminishing marginal product.
• E) constant returns to scale.

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Definitions:

Zero Point

A reference point from which measurements or coordinates are determined in various applications, including machining and mathematics.

Relative Coordinate Programming

A method in computer-aided manufacturing where each new point or command is given as a distance relative to the preceding point.

Origin Point

The point in a coordinate system from which all measurements begin, often represented as (0,0) in a two-dimensional space or (0,0,0) in three-dimensional space.

Coordinate Dimensions

Coordinate dimensions are measurements that provide the exact placement or location of features on a part, specified from a reference point, line, or surface known as a datum.