Long-Run Expansion in an Increasing-Cost Industry Increases Each Firm's Marginal

question 1

Multiple Choice

Long-run expansion in an increasing-cost industry increases each firm's marginal and average costs by

• A)saving money on per-unit production costs
• B)bidding up the price of resources
• C)holding the price of resources constant
• D)forcing down the price of resources
• E)bidding up each firm's marginal revenue

---

Definitions:

SSE

The sum of squared errors, a measure used in statistical analysis to quantify the variation or dispersion of data points around a fitted line or curve.

Slope

The rate of change in the variable on the y-axis per unit change in the variable on the x-axis in a coordinate plane, indicative of the steepness of a line.

Regression Line

A regression line is a straight line that best describes the data on a scatter plot, providing the best fit for the relationship between the independent and dependent variables.

Sales

The activities related to selling or the number of goods or services sold in a given time period.