Multiple Choice
When knowledge gained from manufacturing experience is used to improve production methods, the resulting decline in average costs is reflected in:
A) a downward movement along the LRAC curve.
B) an upward movement along the LRAC curve.
C) a rightward (outward) shift in the LRAC curve.
D) a leftward (inward) shift in the LRAC curve.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The degree of operating leverage can be
Q2: When C > 1:<br>A)average cost is falling.<br>B)increasing
Q3: In the long run, all costs are:<br>A)fixed.<br>B)variable.<br>C)sunk.<br>D)none
Q4: If the slope of a long-run total
Q5: If marginal cost is less than average
Q6: Because dental customers must be willing to
Q7: The cost of duplicating productive capability using
Q9: Minimum efficient scale will decrease if:<br>A)fixed costs
Q10: Cash expenses include:<br>A)some explicit costs.<br>B)all sunk costs.<br>C)all