For Many Firms the LRAC Curve Is U-Shaped

question 46

Multiple Choice

For many firms the LRAC curve is U-shaped.The downward-sloping portion of the LRAC curve can be explained by

• A)economies of scale.
• B)the spreading of overhead.
• C)both A and B.
• D)declining prices of the fixed factor.
• E)decreasing short-run marginal cost.

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Definitions:

Operant Conditioning

A method of training in which the vigor of an action is influenced by rewards or sanctions.

Self-Defeating

Behaviors or thought patterns that undermine one's success or well-being, often occurring despite the individual's awareness of their detrimental effects.

Smoking Habit

The routine or compulsion of consuming tobacco products through the act of smoking, often leading to addiction.

Reinforcement

In psychology, it refers to any stimulus that strengthens or increases the probability of a specific response.