With Increasing Returns (Falling Average Costs), as the Remaining

question 92

Multiple Choice

With increasing returns (falling average costs) , as the remaining
Firms expand, their demand curves become _______________
Due to foreign competition, and firms must _______________.

• A)steeper; raise prices
• B)flatter; lower prices
• C)flatter; raise prices
• D)steeper; lower prices

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Definitions:

Inflexible

characterizes an unwillingness or inability to change or adapt to new circumstances, ideas, or information.

Stereotyping

The act of assigning a set of characteristics to people based on their membership in a particular group, often oversimplifying and having negative connotations.

Perceptual Distortion

The misinterpretation or misperception of a real external stimulus, often influenced by an individual's mental state or preconceptions.

Halo Effects

A cognitive bias where the perception of one positive trait leads to the assumption of other positive traits in an individual or thing.