If the Long-Run Average Cost Curve Is U-Shaped, What Is

question 163

Multiple Choice

If the long-run average cost curve is U-shaped, what is the optimal scale of production from society's viewpoint?

• A)the minimum efficient scale.
• B)where maximum economic profit is earned by producers.
• C)where firm profit is large enough to finance research and development.
• D)one which guarantees economic profit.

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group.

Self-fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true, due to positive feedback between belief and behavior.

Actor-observer Bias

A cognitive bias where individuals attribute their own actions to external factors, while they attribute others' actions to internal traits or characteristics.

Positive Stereotypes

Stereotypes that attribute positive attributes to a group, which, despite being favorable, can still have negative consequences and reduce individuality.