​You Would Expect That Your Firm Is Experiencing Increasing Returns

question 27

Multiple Choice

​You would expect that your firm is experiencing increasing returns to scale if

• A)​Long run average costs increase with output
• B)Long run average costs decrease with output
• C)Long run average costs are constant with respect to output
• D)​None of the above

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Definitions:

Controls

In experimental research, controls refer to elements that remain constant and unchanging to ensure that changes in the dependent variable are due to the independent variable.

Sensation

The immediate response of our sensory receptors (e.g., eyes, ears) to basic stimuli such as light, color, sound, pressure, and odor.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and transmit them toward the cell body.

Synapses

The junctions between nerve cells where signals are transmitted from one neuron to another, playing a crucial role in the functioning of the nervous system.