When a Firm Is on the Portion of Its Long-Run

question 126

Multiple Choice

When a firm is on the portion of its long-run ATC curve that slopes upward, it is experiencing:

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)All of these are possible.

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Definitions:

Practice

The act of repeatedly performing or exercising an activity or skill so as to acquire or maintain proficiency in it.

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering reward when that behavior is exhibited.

Negative Reinforcement

A process in behavioral psychology where the removal of an unfavorable event or outcome after the display of a behavior increases the likelihood of the behavior being repeated in the future.

Positive Punishment

Adding an unfavorable outcome or event following an undesired behavior to decrease the likelihood of that behavior happening in the future.