When the Long-Run Average Cost Curve Is Downward Sloping

question 81

Multiple Choice

When the long-run average cost curve is downward sloping,

• A) economies of scale are present.
• B) diseconomies of scale are present.
• C) the average fixed cost curve must be upward sloping.
• D) the firm experiences constant returns to scale.
• E) The premise of the question is wrong because long-run average cost curves never slope downward.

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Definitions:

Executive Exemption

A classification in labor law that exempts certain executives from overtime pay and minimum wage requirements.

Age Discrimination

The unfair treatment of individuals in the workplace based on their age, prohibited under various labor laws.

ADEA

The Age Discrimination in Employment Act (ADEA) is a federal law that aims to protect employees and job applicants 40 years of age and older from age-based discrimination in the workplace.

Equal Pay Act

Laws designed to eliminate differences in pay between genders by guaranteeing that both men and women are compensated equally for work of the same value.