Increasing Returns Occur When

question 98

Multiple Choice

Increasing returns occur when

• A)marginal cost is increasing.
• B)marginal cost is decreasing.
• C)average total cost is falling.
• D)average variable cost is falling.
• E)marginal product is decreasing.

Understand the concept of government failure and its relevance to public choice theory.

Grasp the paradox of voting and its implications for policy-making and societal preferences.

Discern the differences between majority voting outcomes and efficient resource allocation.

Understand the principles of the median-voter model and its application in predicting policy outcomes.

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Definitions:

Heartwood

The dense inner part of a tree trunk, yielding the hardest timber, providing strength, and often darker than the surrounding sapwood.

Vessels

Hollow tubes that carry fluids such as blood, lymph, or sap within an organism, including arteries, veins, and capillaries.

Mycorrhizae

Symbiotic associations between the roots of plants and a fungus, enhancing nutrient and water uptake for the plant and providing carbohydrates for the fungus.

Atmospheric Nitrogen

The form of nitrogen gas (N2) that makes up about 78% of the Earth's atmosphere, largely inert and not directly usable by most organisms.