A Firm Whose Production Function Displays Increasing Returns to Scale

question 7

Multiple Choice

A firm whose production function displays increasing returns to scale will have a total cost curve that is

• A)a straight line through the origin.
• B)a curve with a positive and continually decreasing slope.
• C)a curve with a positive and continually increasing slope.
• D)a curve with a negative and continually decreasing slope.

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Definitions:

Agreeable

A personality trait characterized by a tendency to be pleasant, cooperative, and harmonious in interactions with others.

Conscientious

Characterized by the desire to do one’s work or duty well and thoroughly.

Centralized Control

An organizational structure where decision-making authority is concentrated at the top levels of management.

Labor Relations

Field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements.