Increasing Returns to Scale for a Firm Is Shown Graphically

question 117

Multiple Choice

Increasing returns to scale for a firm is shown graphically by

• A)a downward-sloping long-run average cost curve.
• B)an upward-sloping long-run average cost curve.
• C)a horizontal long-run average cost curve.
• D)a vertical long-run average cost curve.
• E)None of the above; returns to scale have nothing to do with the shape of the long-run average cost curve.

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Definitions:

Reduction

A chemical reaction in which a molecule gains electrons, often accompanied by a decrease in oxidation state.

Chemical Equation

A symbolic representation of a chemical reaction, with reactants on the left, products on the right, and an arrow indicating the direction of the reaction.

Iron

A strong, hard magnetic silvery-grey metal, very abundant in the earth's crust and the core element of hemoglobin in blood.

Pyrolysis

A thermochemical decomposition of organic material at elevated temperatures in the absence of oxygen.