In the Painting White Clouds Over Xiao and Xiang by Wang

question 19

Multiple Choice

In the painting White Clouds over Xiao and Xiang by Wang Jian:

• A) the view is fixed, as if standing on a mountain.
• B) the painter's primary concern is topographical accuracy.
• C) the painter's inscription situates him in a centuries-old tradition of painterly and poetic meditations.
• D) All of these are the case.
• E) None of these answers are correct.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Long-run Average Total Costs

The average cost per unit of output where all inputs, including capital, are variable and the firm has adjusted all inputs to find the lowest average cost.

Long-run Marginal Cost

The change in total cost when producing one additional unit of a product or service in the long term, where all inputs are considered variable.

Economies of Scale

Enterprises gain cost benefits from their operation size, as the cost for each unit produced typically drops when the scale enlarges because fixed expenses are distributed across a greater number of output units.