Which of the Following Is Not True When There Are

question 385

Multiple Choice

Which of the following is not true when there are large economies of scale such that one firm can produce at a lower average cost than can be achieved by multiple firms?

• A) This situation produces a natural monopoly.
• B) Proportional increases in output yield proportionally small increases in total cost.
• C) The long-run average cost curve of the firm will increase at a low level of output.
• D) There will only be one firm in this industry.

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Definitions:

Centration

A cognitive limitation in young children's thinking, marked by focusing on one aspect of a situation while neglecting others, characteristic of the preoperational stage.

Conservation Skills

Cognitive abilities that enable a child to understand that quantity or amount does not change when its form or appearance is altered, a concept developed by Jean Piaget.

Preoperational Thought

A stage in Piaget's theory of cognitive development where children (ages 2-7) begin to engage in symbolic play and struggle with logic and understanding others' perspectives.

Intuitive Reasoning

The process of making decisions on the basis of what feels right or what is instinctively believed to be true without logical reasoning.