A Downward- Sloping LRAC Curve Will Shift Downward Because of

question 16

Multiple Choice

A downward- sloping LRAC curve will shift downward because of

• A) factor substitution.
• B) a decrease in factor prices.
• C) specialization.
• D) economies of scale.
• E) the use of large, specialized machinery as the volume of output increases.

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Definitions:

Compound

A chemical entity that is formed by the combination of two or more elements in a specific proportion.

Functional Group

A specific group of atoms within a molecule that is responsible for the characteristic chemical reactions of that molecule.

R-OH

This is a general formula representing alcohols where R represents the alkyl group and -OH represents the hydroxyl functional group.

Alcohol

Any organic compound where the hydroxyl functional group (–OH) is bound to a carbon atom.