"Economies and Diseconomies of Scale"

The profit ____ assumption means that it will be accepted that it is true that a business wants to make as much money as it can by selling its product.

maximization - (¿A.R?)

____ are things that are accepted to be true when making models of how the economy works.

Assumptions - (¿A.R?)

____ is the difference between how much money a business makes by selling its goods and how much it costs to make its goods.

Profit - (¿A.R?)

What is true when a company experiences economies of scale?

Average costs are falling as the company increases production. - (¿A.R?)

Economies of scale occur when average production costs ____ as the amount produced ____.

decrease; increases - (¿A.R?)

Businesses want to make decisions that allow them to produce the amount that they want at the ____ average cost.

lowest - (¿A.R?)

The ____ returns to scale are the flat section in the middle of the curve where per-unit costs are the same as more is produced.

constant - (¿A.R?)

If a business saw that as it produced more, its average costs were rising, the firm is experiencing ____.

diseconomies of scale - (¿A.R?)

Diseconomies of scale occur when average production costs ____ as the amount produced ____.

increase; increases - (¿A.R?)