Figure 8.2 -Refer to Figure 8.2. as the Firm Makes Its Long-Run

question 117

Multiple Choice

Figure 8.2
-Refer to Figure 8.2. As the firm makes its long-run adjustment, which must be true?

• A) It takes advantage of increasing returns to scale.
• B) It suffers from decreasing returns to scale.
• C) It takes advantage of increasing marginal product.
• D) It takes advantage of economies of scale.
• E) It takes advantage of diseconomies of scale.

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Definitions:

Pancreas

A gland in the digestive and endocrine systems of vertebrates that produces hormones like insulin and digestive enzymes.

Liver

A vital organ found in vertebrates which performs multiple functions such as detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Hydrogenation

Hydrogenation is a chemical process whereby hydrogen is added to unsaturated bonds in organic compounds, often used to convert liquid oils into solid fats.

Trans Fatty Acids

Types of unsaturated fats that have been chemically altered through hydrogenation, often found in processed foods and linked to various health risks.