If Economies of Scale Exist for a Particular Production Relationship

question 218

Multiple Choice

If economies of scale exist for a particular production relationship, long-run average costs will

• A)rise.
• B)fall.
• C)first rise and then fall.
• D)be unaffected since there is no direct relationship between the two.

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Definitions:

Nonhuman Beings

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Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Mental Set

A tendency to solve problems using procedures that worked before on similar problems.

Stereotype Threat

A burden of doubt a person feels about his or her performance, due to negative stereotypes about his or her group’s abilities.