Use the Following to Answer Question

question 83

Multiple Choice

Use the following to answer question:
-(Figure: Long-Run Average Cost) Use Figure: Long-Run Average Cost.This firm has _____ in the output region from A to B.

• A)constant returns to scale
• B)economies of scale
• C)diseconomies of scale
• D)constant total cost as output increases

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Definitions:

Type I Error

The mistake of rejecting a true null hypothesis, also known as a false positive.

Type II Error

The statistical error that occurs when one fails to reject a false null hypothesis, a mistake of not detecting an effect that is there.

Nonparametric Techniques

Statistical methods that do not assume a specific distribution for the data they are analyzing.

Parametric Techniques

Statistical methods based on assumptions about the distribution of the underlying population from which the sample data are drawn.