If a Firm Is Experiencing Economies of Scale, Then the Long-Run

question 39

Multiple Choice

If a firm is experiencing economies of scale, then the long-run average cost curve is

• A)falling.
• B)rising.
• C)horizontal.
• D)shifting.

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Definitions:

Tax Rate Structure

The framework defining how tax rates progress based on variables such as income level, value of property, or volume of transaction.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount of the taxable income or goods.

Average Tax Rate

The fraction of total income that is paid in taxes.