QUESTION 5 20 poin Match each of the following terms and descriptions Constant returns to scale when the average cost of producing each individual unit A. declines as total output increases average cost of producing each individual item increases as v Diseconomies of scale B. output increases v economies of scale average cost of producing each individual unit remains C. constant as output increases v Long Run Average Total Cost Curve the relationship between output and costs over the life of a business
QUESTION 5 20 poin Match each of the following terms and descriptions Constant returns to scale when the average cost of producing each individual unit A. declines as total output increases average cost of producing each individual item increases as v Diseconomies of scale B. output increases v economies of scale average cost of producing each individual unit remains C. constant as output increases v Long Run Average Total Cost Curve the relationship between output and costs over the life of a business
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:B. the
rodu
g one m
Average Variable Cost
C. fixed costs divided by output
D. total cost divided by output
v Marginal Cost
QUESTION 5
20 points
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Match each of the following terms and descriptions
Constant returns to scale
when the average cost of producing each individual unit
A.
declines as total output increases
Diseconomies of scale
average cost of producing each individual item increases as
В.
output increases
economies of scale
average cost of producing each individual unit remains
C.
constant as output increases
Long Run Average Total Cost Curve
the relationship between output and costs over the life of a
D.
business
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