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:

Androgyny

The combination of masculine and feminine characteristics into an ambiguous form, often related to fashion, sexuality, and identity.

Maleness

The qualities, characteristics, or attributes considered typical of or associated with men or male organisms.

Masculinity

A set of attributes, behaviors, and roles associated with boys and men, often emphasized as part of societal norms.

Body Cathexis

The emotional significance and satisfaction individuals attach to various parts of their bodies.