A Downward-Sloping Portion of a Long-Run Average Total Cost Curve

question 161

Multiple Choice

A downward-sloping portion of a long-run average total cost curve is the result of

• A) economies of scale.
• B) diseconomies of scale.
• C) diminishing returns.
• D) the existence of fixed resources.

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Definitions:

Pearson Product-moment

A statistical coefficient expressing the correlation between two variables, measuring the strength and direction of their linear relationship.

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Relationship Direction

Indicates whether the relationship between variables is positive, negative, or neutral, denoting the nature of the correlation.

True Score

A theoretical concept in measurement theory referring to the actual value of a variable or the accurate reflection of a construct being measured.