Which of the Following Statements Is Correct If a Firm

question 22

Multiple Choice

Which of the following statements is correct if a firm builds a large plant and,at economic capacity output,its short-run average cost increases?

• A)Decreasing returns to scale must be present.
• B)Increasing returns to scale must be present.
• C)Constant returns to scale must be present.
• D)Decreasing,increasing and constant returns to scale are all possible.

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Definitions:

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A treatment method that involves the use of light to reduce or manage symptoms of certain medical conditions.

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The process of determining the amount of bilirubin in the blood, indicative of liver function and possible jaundice.

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A small amount of blood taken from the body, typically for laboratory testing or analysis to diagnose health conditions.

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A condition in newborns characterized by brain damage due to high levels of bilirubin in the blood.