Suppose a Firm Experiences Lower Average Costs Whenever Output Increases

question 76

Multiple Choice

Suppose a firm experiences lower average costs whenever output increases in the long run. Then we would expect the firm to have

• A) a U-shaped long-run average cost curve.
• B) an L-shaped long-run average cost curve.
• C) a long-run average cost curve that always decreases.
• D) a minimum efficient scale relatively close to the origin.

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Definitions:

Incidence

The frequency or rate at which new cases of a condition, disease, or event occur in a specific population over a certain period.

Master Status

A primary or dominant status that an individual possesses which shapes their identity and interactions in society.

Stigmatized

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Stigma

The disapproval and discriminating attitudes that society attaches to individuals or groups considered to deviate from the norm.