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:

Year-End Assets

The total value of all assets held by an individual or entity at the conclusion of a financial year.

Liabilities

Financial obligations or debts owed by a business or individual.

Equity Mutual Funds

Investment funds that pool money from various investors to purchase a diversified portfolio of stocks.

Fixed-Income Securities

Investments that provide regular income payments, such as bonds or treasury bills, with predetermined interest rates.