Increasing Returns to Scale for a Firm Is Shown Graphically

question 90

Multiple Choice

Increasing returns to scale for a firm is shown graphically by

• A) a horizontal long- run average cost curve.
• B) a downward- sloping long- run average cost curve.
• C) an upward- sloping long- run average cost curve.
• D) a vertical long- run average cost curve.
• E) none of the above; returns to scale have nothing to do with the shape of the long- run average cost curve.

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Definitions:

Cancer Drug

Medications specifically designed or used to prevent, treat, or slow the progression of cancer by targeting specific cells or pathways.

Model

Simulation of a process that aids conceptual understanding until the process can be studied firsthand; a hypothesis that describes how a particular process could possibly be carried out.

Researchers

Individuals engaged in systematic investigation to establish facts, develop new conclusions, or revise existing theories.

Extreme Environments

Habitats characterized by extreme conditions, such as high or low temperatures, high salinity, or high pressures, that are challenging for most life forms.