A Firm That Has Lower Costs Per Unit as It

question 105

Multiple Choice

A firm that has lower costs per unit as it increases production in the long run has:

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)increasing opportunity costs.
• D)scale reduction.

---

Definitions:

Population

A group of individuals of the same species living and interbreeding within a given area.

Neutral Alleles

Genetic variants that do not affect the fitness of an organism and are unaffected by natural selection.

Population Size

The total number of individual organisms inhabiting a particular area or environment at a given time.

Inbreeding

The mating of closely related individuals, which can increase the chance of offspring inheriting identical copies of genes from both parents, potentially leading to a greater risk of recessive genetic disorders.