Which of the Following Cost Curves Demonstrate Increasing Returns to Scale

question 109

Multiple Choice

Which of the following cost curves demonstrate increasing returns to scale?

• 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)returns to scale have nothing to do with the shape of the long-run average cost curve

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Definitions:

Basic Motivation

The fundamental drives, desires, or needs that propel individuals to engage in certain behaviors or pursue particular goals.

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The quality of being able to adapt to different situations, change, or bend without breaking.

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A characteristic of individuals who accept the possibility of errors as a part of the learning process and personal growth, recognizing that mistakes often lead to new insights and accomplishments.

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The act of expressing disapproval and noting the faults or shortcomings of something or someone.