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
Q1: When C > 1:
A)average cost is falling.
B)increasing
Q2: Minimum efficient scale will decrease if:
A)fixed costs
Q3: If the slope of a long-run total
Q4: The degree of operating leverage can be
Q5: The cost of duplicating productive capability using
Q6: If marginal cost is less than average
Q8: Cash expenses include:
A)some explicit costs.
B)all sunk costs.
C)all
Q9: In the long run, all costs are:
A)fixed.
B)variable.
C)sunk.
D)none
Q10: Because dental customers must be willing to
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