​You Would Expect That Your Firm Is Experiencing Decreasing Returns

question 6

Multiple Choice

​You would expect that your firm is experiencing decreasing 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:

Dominant Inheritance

A pattern of genetic inheritance where only one copy of a gene from one parent is needed to express a certain trait, often overshadowing the other non-dominant gene.

Normal Behavior

actions or reactions of an individual or group that are considered typical or expected within a specific culture or society.

Recessive

A genetic characteristic that is expressed in an organism's phenotype only when two copies of the gene responsible for the trait are present.

Phenotype

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.