Suppose a Firm Experiences Decreasing Returns to Scale

question 131

Multiple Choice

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

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

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Definitions:

Air Pollution

The release of pollutants into the air that are detrimental to human health and the planet's ecosystems.

Urbanization

refers to the process by which towns and cities grow as populations move from rural to urban areas, often in search of better economic opportunities.

Triple Bottom Line

A company’s balance sheet according to profit, people, and the planet.

Environmental Impact

The effect of human activity on the natural environment, which can range from pollution and destruction of ecosystems to conservation and restoration efforts.