If a Firm Has a U-Shaped Long-Run Average Cost Curve

question 199

Multiple Choice

If a firm has a U-shaped long-run average cost curve,

• A) its fixed cost rises as output rises.
• B) it must have increasing returns to scale at low levels of production and decreasing returns to scale at high levels of production.
• C) it must have increasing returns to each input at low levels of production and decreasing returns to each input at high levels of production.
• D) the firm can maximize its output by operating at the point of minimum long-run average cost.

---

Definitions:

Routine Exercise

A regular physical activity regime followed for the purpose of improving or maintaining physical fitness and overall health.

Fortified

Often refers to food or drinks that have had nutrients added to them that do not naturally occur in those products, to enhance their nutritional value.

Vitamin D

A fat-soluble vitamin essential for bone health, immune function, and reducing inflammation.

Health Promotion

The process of enabling people to increase control over, and to improve, their health through lifestyle changes, education, and advocacy.