When a Firm Increases Its Plant Size in the Long

question 85

Multiple Choice

When a firm increases its plant size in the long run and its per-unit costs fall, this is called

• A) diminishing returns and is shown by the downward-sloping portion of the MP curve (or the upward-sloping portion of the MC curve).
• B) constant returns to scale and is shown by the flat portion of the LRATC curve.
• C) diseconomies of scale and is shown by the upward-sloping portion of the LRATC curve.
• D) economies of scale and is shown by the downward-sloping portion of the LRATC curve.

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Definitions:

Harm Reduction Programs

Initiatives aimed at minimizing the negative consequences associated with certain behaviors, such as drug use or sexual activity, without necessarily stopping the behavior.

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involves the consumption of drugs or alcohol, especially in a way that is illegal or harmful.

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The act of consuming alcohol by individuals below the legal drinking age, which poses risks to their health, academic performance, and legal standing.

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Individuals who are not yet considered adults for the purposes of determining legal responsibility or eligibility for certain activities, typically under the age of 18.