Suppose a Firm Experiences Decreasing Returns to Scale

question 58

Multiple Choice

Suppose a firm experiences decreasing returns to scale.This is shown graphically by

• A)a downward- sloping long- run marginal- cost curve.
• B)an increasing marginal product curve.
• C)a horizontal long- run average cost curve.
• D)a downward- sloping long- run average cost curve.
• E)an upward- sloping long- run average cost curve.

Comprehend the distinctions between communal and exchange orientations in social relationships.

Analyze the emotional impact of social rejection and inclusion.

Examine self-serving bias and attribution in group contexts.

Compare the fight-or-flight response to exclusion with the tend-and-befriend response.

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Definitions:

Discounted

Reduced in price or reflecting the present value of future cash flows when taking into account the time value of money.

Present Value

The value today of a future amount of money or series of payments, adjusted for a specific return rate.

Discounted

The process of determining the present value of a payment or stream of payments that will be received in the future.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.