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:

Maximum

The highest value in a data set.

Multivariate Statistics

A subset of statistics encompassing the simultaneous observation and analysis of more than one outcome variable.

Significant Differences

A term used in statistics to indicate that the differences observed between groups or variables are unlikely to have occurred by chance.

Generalize Findings

The process of applying the results of a study or conclusion beyond the specific contexts or participants studied.