If the Generic Production Function Q=f(K,L) Displays Increasing Returns to Scale

question 20

Multiple Choice

If the generic production function Q=f(K,L) displays increasing returns to scale, the value of K is fixed in the short-run, and the prices of all inputs are held constant, then:

• A) the Short-Run Average Cost curve must be strictly decreasing.
• B) the Long-Run Average Cost curve must be strictly decreasing .
• C) the Short-Run and the Long-Run Average Cost curves will coincide.
• D) the Long-Run Average Cost curve must be strictly increasing .

---

Definitions:

Biomedical Therapy

Treatment approaches that involve medication or medical procedures to treat psychological disorders.

Biological Treatments

Interventions in psychiatry that affect the body’s biochemical state, such as medication, electroconvulsive therapy, or other medical procedures to treat mental disorders.

Philippe Pinel

A French physician recognized for his pioneering work in the treatment of mental illness, emphasizing humane approaches and the removal of chains from patients.

Humane Treatment

Respectful and compassionate treatment of others, especially regarding the care of animals or in the context of punishment.