As a Firm Attempts to Increase Its Production,its Long-Run Average

question 3

Multiple Choice

As a firm attempts to increase its production,its long-run average costs eventually rise because of

• A)the law of diminishing returns.
• B)diseconomies of scale.
• C)fixed capital.
• D)insufficient demand.

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Definitions:

Statement of Stockholders' Equity

A financial statement that shows changes in the value of a company’s equity over a specified period.

Income Statement

The income statement is a financial document that reports a company's financial performance over a particular period, showing revenues, expenses, and net income or loss.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including income statement, balance sheet, and statement of cash flows.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a particular point in time, providing a snapshot of its financial condition.