An Industry That Has Increasing Returns to Scale and Fixed

question 43

Multiple Choice

An industry that has increasing returns to scale and fixed factor prices will have a long-run supply curve that is

• A)vertical.
• B)horizontal.
• C)upward sloping.
• D)downward sloping.

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Definitions:

Tolerance

A person's diminished response to a drug, which occurs when the drug is used repeatedly and the body adapts to its presence.

Intoxicated

Refers to the condition of being under the influence of alcohol or drugs, which impairs cognitive and physical functions.

Psychoactive Drugs

Substances that affect the mind, mood, or other mental processes.

Neurotransmitter

Chemical messengers that transmit signals across the synaptic gaps between neurons.