When the Firm Increases Output and the Costs Rise Disproportionately

question 205

Multiple Choice

When the firm increases output and the costs rise disproportionately slower, 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

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Definitions:

Goodell Sign

An indicator of pregnancy characterized by the softening of the cervix and the vagina caused by increased vascular congestion.

Chadwick Sign

A bluish discoloration of the cervix, vagina, and labia resulting from increased blood flow, usually an early sign of pregnancy.

Cervix

The lower part of the uterus that connects to the vagina and dilates during childbirth to allow for the passage of a baby.