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:

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An advanced Mesoamerican civilization that dominated large parts of central Mexico from the 14th until the 16th century, known for its architectural, mathematical, and astronomical achievements.

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