When the Firm Increases Output and the Costs Rise Proportionately

question 211

Multiple Choice

When the firm increases output and the costs rise proportionately, then the long-run average cost curve is ________ and the firm is experiencing ________.

• A) horizontal; constant returns to scale
• B) downward sloping; constant returns to scale
• C) upward sloping; diseconomies of scale
• D) downward sloping; economies of scale

---

Definitions:

Number

A mathematical entity utilized for the purposes of counting, measuring, and labeling tasks.

Currency

The system of money in use or circulation within a particular country or economic region.

Upper Pane

The top section of a split interface in software applications, often used to display different types of content or controls simultaneously with a lower pane.

Table Design View

A feature in database applications that allows users to define or modify a table's structure, including fields, data types, and descriptions.