If a Product Exhibits Increasing Returns to Scale, Then the Average

question 4

Multiple Choice

If a product exhibits increasing returns to scale, then the average cost of making the product will ______ as a company produces more of it?

• A) Increase.
• B) Decrease.
• C) Remain the same.
• D) There is insufficient information provided to answer the question.

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Definitions:

Nitrogen Dioxide

A toxic, reddish-brown gas that is part of the nitrogen oxides group, contributing to air pollution and respiratory issues.

Organic Compounds

Chemical compounds containing carbon atoms bonded to hydrogen atoms, along with other elements, widely found in living organisms.

Secondary Pollutants

Pollutants not emitted directly into the air, but formed when primary pollutants react or interact in the atmosphere.

High Temperatures

denotes periods or conditions of elevated temperature in the environment, which may have various effects on ecosystems, human health, and climate.