A U-Shaped Long-Run Average Cost Curve Indicates That

question 43

Multiple Choice

A U-shaped long-run average cost curve indicates that

• A)economies of scale follow diseconomies of scale.
• B)diseconomies of scale follow economies of scale
• C)economies of scale and economies of scope are the same.
• D)economies of scale dominate diseconomies of scale over all levels of production.

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Definitions:

Average Score

The sum of all scores in a set divided by the number of scores, commonly used as a measure of central tendency.

Variability

The extent to which data points in a statistical distribution or dataset differ from each other and from the mean.

Testable Version

A formulation of a hypothesis or theory that is specific and operational, allowing it to be empirically tested.

Hypothesis

An initial explanation offered with limited proof to guide subsequent investigative efforts.