If a Firm Experiences Increasing Returns to Scale at All

question 77

Multiple Choice

If a firm experiences increasing returns to scale at all levels of output:

• A) the slope of its long-run total cost curve is everywhere negative.
• B) the slope of its short-run average cost curve is everywhere negative.
• C) the slope of its long-run average total cost curve is everywhere negative.
• D) the slope of its production function is everywhere negative.

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Definitions:

Creativity

The use of imagination or original ideas to create something; inventiveness.

Tolerance for Ambiguity

The degree to which an individual is comfortable with uncertainty, unpredictability, and unclear situations without becoming overly stressed.

Internal Locus

The belief that one has control over the events in their life, as opposed to external forces being responsible.

Creativity

The ability to generate new ideas, solutions, or innovations that are both original and valuable.