If a Firm Has Increasing Returns to Scale at All

question 206

Multiple Choice

If a firm has increasing returns to scale at all levels of output, then the

• A)marginal cost for the firm declines over the entire range of output.
• B)average cost for the firm declines over the entire range of output.
• C)fixed costs of operation diminish to zero.
• D)production technology is optimized.

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Definitions:

Horizontal

Refers to an orientation or position that is parallel to the ground or baseline, often used to describe direction or alignment.

Vertical

Referring to the direction or orientation that is perpendicular to the horizon or ground level, often used in spatial descriptions.

Output

The result or data produced by a computer or system after processing input.