If Production Displays Economies of Scale, the Long-Run Average Cost

question 104

Multiple Choice

If production displays economies of scale, the long-run average cost curve is

• A)above the short-run average total cost curve.
• B)downward sloping.
• C)upward sloping.
• D)below the long-run marginal cost curve.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior conditioning.

Negative Reinforcer

A stimulus whose removal or avoidance following a behavior increases the likelihood of that behavior being repeated.

Classical Conditioning

A method of learning that happens when an environmental trigger and an inherently occurring stimulus are linked, causing a reflex to be learned.

Desired Response

The specific outcome or behavior that an individual or experiment aims to achieve or elicit as a result of certain stimuli or interventions.