The Long-Run Average Total Cost Curve

question 186

Multiple Choice

The long-run average total cost curve

• A) is an envelope-shaped curve mapped out by the short-run average total cost curves for alternative plant sizes.
• B) intersects the minimum point of each short-run average total cost curve for alternative plant sizes.
• C) rises throughout its entire range when increasing returns are present.
• D) falls throughout its entire range due to the law of diminishing returns.

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Definitions:

Systematic Desensitization

A therapeutic technique aimed at reducing anxiety by gradually exposing the patient to the anxiety-provoking stimulus.

Causal Attribution

The process by which individuals explain the cause or reasons behind events and behaviors, often categorizing them as internal or external.

Continuous Reinforcement Schedule

A learning paradigm where every correct response is followed by a reward, facilitating rapid behavior acquisition.

Partial Reinforcement Schedule

A learning process in which a response is reinforced only a portion of the time, leading to stronger behavioral persistence.