Empirical Studies of Production Suggest That the Long-Run Average Cost

question 81

Multiple Choice

Empirical studies of production suggest that the long-run average cost curve

• A)is U-shaped
• B)has an inverted L shape
• C)is L-shaped
• D)is horizontal
• E)shows diminishing marginal returns

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Definitions:

Scientific Approach

A method of inquiry that uses systematic, empirical, and objective methods to investigate phenomena, form hypotheses, and gather evidence to support or refute them.

Falsifiability

The principle that a good scientific idea or theory should be capable of being shown to be false when tested using scientific methods.

Empiricism

Use of objective observations to answer a question about the nature of behavior.

Empirical Evidence

Evidence that is based on observation, experience, or experiment, rather than theory or pure logic.