Which of the Following Statements Regarding the Cost Curves Illustrates

question 140

Multiple Choice

Which of the following statements regarding the cost curves illustrates the situation when a firm experiences increasing returns to scale at all levels of output?

• A) The slope of its production function is negative.
• B) The slope of its long-run total cost curve is negative.
• C) The slope of its short-run average cost curve is always negative.
• D) The slope of its long-run average total cost curve is always negative.

---

Definitions:

Cross-race Effect

The tendency to more easily recognize faces of the race that one is most familiar with, which can influence eyewitness testimony and social interactions.

Therapeutic Communities

A treatment model used, especially in cases of substance abuse, where the community itself, through its structure and operations, is the main agent of change.

Recidivism

The act of relapsing into criminal behavior or offending, often measured by re-arrests, reconvictions, or returns to prison.

Situational Factors

External circumstances or events that influence an individual's behavior, decision-making, or performance in a given context.