Downward Sloping Long-Run Supply Curves Occur in Markets

question 96

Multiple Choice

Downward sloping long-run supply curves occur in markets

• A) with learning-by-doing.
• B) with increasing returns to scale.
• C) with constant returns to scale.
• D) Either A or B

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Definitions:

Market Price

The prevailing cost at which a service or asset is offered for sale or purchase in the open market.

Stock Split

involves dividing a company's existing stock into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Retained Earnings

The portion of a company’s profits that is kept or retained for reinvestment in the business, rather than being paid out as dividends to shareholders.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, as recorded on the balance sheet.