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.

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Definitions:

Proctologic

Pertaining to proctology, a branch of medicine focused on the diagnosis and treatment of disorders of the rectum and anus.

Anal Examinations

Medical procedures that involve the inspection and evaluation of the anus and rectum for disease or abnormalities.

Rectal Examinations

A physical examination in which a doctor or nurse inserts a finger into the rectum to check for abnormalities of organs or other structures in the pelvis or abdomen.

Lung Expansion

The process of the lungs increasing in volume during inhalation, important for gas exchange.