Increasing Returns to Scale for a Firm Is Shown Graphically

question 117

Multiple Choice

Increasing returns to scale for a firm is shown graphically by

• A)a downward-sloping long-run average cost curve.
• B)an upward-sloping long-run average cost curve.
• C)a horizontal long-run average cost curve.
• D)a vertical long-run average cost curve.
• E)None of the above; returns to scale have nothing to do with the shape of the long-run average cost curve.

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