Suppose a Firm Experiences Decreasing Returns to Scale

question 131

Multiple Choice

Suppose a firm experiences decreasing returns to scale.This is shown graphically by

• A)a downward-sloping long-run average cost curve.
• B)an upward-sloping long-run average cost curve.
• C)a downward-sloping long-run marginal-cost curve.
• D)a horizontal long-run average cost curve.
• E)an increasing marginal product curve.

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Definitions:

School

An institution for educating children and young people, often consisting of various levels such as elementary, middle, and high school.

Behaviorism

A school of psychology that focuses on observable behaviors as the subject of study, negating the need to consider internal mental states.

Theories

Systematic sets of ideas intended to explain phenomena or concepts, providing frameworks for understanding observations and making predictions.

John B. Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behaviors over internal mental states.