The Long-Run Average Cost Curve Is U-Shaped Because of Which

question 116

Multiple Choice

The long-run average cost curve is U-shaped because of which of the following?

• A) decreasing marginal returns as more labor is hired
• B) constant fixed costs as output is increased
• C) economies and diseconomies of scale
• D) increasing marginal returns as more labor is hired
• E) decreasing average fixed costs as output is increased

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Definitions:

Strategic Alliance

A partnership between two or more organizations to pursue a set of agreed upon objectives while remaining independent organizations.

R&D Consortium

A collaboration among businesses, universities, and/or government agencies aimed at research and development activities.

Diffusion

The way in which an inventive idea is shared through particular routes over a duration among participants of a social group.

Network Forms

Organizational structures characterized by interconnected nodes, allowing for flexible and dynamic interactions among different entities.