Which of the Following Is Consistent with Increasing Returns to Scale

question 37

Multiple Choice

Which of the following is consistent with increasing returns to scale?

• A)An upward sloping marginal cost curve
• B)A downward sloping marginal cost curve
• C)An upward sloping long-run average cost curve
• D)A downward sloping long-run average cost curve

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Definitions:

Direct Labor Cost

The total cost of wages for employees who work directly on the manufacturing of products or delivery of services.

Overapplied Overhead

A scenario in which the overhead costs assigned for manufacturing surpass the real overhead costs that were incurred.

Actual Overhead Costs

The real costs incurred for overhead in a specific period, as opposed to budgeted or standard overhead costs.

Jobs

Specific tasks or projects to be completed as part of the operations of a business, often referring to employment positions or work assignments.