Which of the Following Statements About an Increasing-Returns-To-Scale Industry Is

question 26

Multiple Choice

Which of the following statements about an increasing-returns-to-scale industry is not true?

• A)It will tend to concentrate production in the hands of a very few large firms.
• B)Firms in the industry face higher costs per unit of production as their level of output increases.
• C)Opportunity costs may fall with the level of output.
• D)Proponents of strategic trade policy contend that tariffs can be used to stimulate production by a domestic industry capable of achieving increasing returns to scale.
• E)The costs of producing a unit of output fall as more output is produced.

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Definitions:

Diaphragm

Musculomembranous partition between the abdominal and thoracic cavities.

Common Bile Duct

A duct that carries bile from the liver and gallbladder to the duodenum, playing a critical role in digestion by introducing bile to the intestinal tract.

Gallbladder

Pear-shaped receptacle on the inferior surface of the liver; serves as a storage reservoir for bile.

Hepatic Ducts

Ducts within the liver that convey bile to the gallbladder and duodenum.