If the Generic Production Function Q = F (K,L)displays Increasing

question 28

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.

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Definitions:

Elwood Holton

An influential figure in the field of adult education, known for contributions to theories regarding the transfer of learning and human resource development.

Implications

The possible effects or consequences that may result from a particular action or decision.

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The successful transfer of abilities, understanding, or actions acquired in one situation to a different situation.

Affective Reaction

The emotional response or feelings of an individual toward a particular experience, event, or change, which can significantly influence motivation and behavior.