Refer to Figure 8

question 2

Multiple Choice

Refer to Figure 8.6,which shows just three of a firm's various possible short-run average cost curves.Which of the following statements is true?

• A) The firm experiences increasing returns to scale at production levels above 130 units of output.
• B) The firm experiences constant returns to scale.
• C) The firm experiences increasing returns to scale up to a production level of 130 units of output.
• D) The firm experiences decreasing returns to scale up to a production level of 130 units of output.

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Definitions:

Inherited Traits

Characteristics or features that are passed from parents to their offspring through genes.

Observable Behavior

Actions or reactions of an individual, in response to external or internal stimuli, that are visible and measurable.

Sigmund Freud

An innovator in neurology from Austria, he introduced psychoanalysis as a method to heal psychopathologies through verbal exchanges between a patient and a psychoanalyst.

Functions

Distinctive roles or activities that an entity or process performs or serves in a system or organization.