The Long-Run Average Cost Curve

question 53

Multiple Choice

The long-run average cost curve:

• A)will rise once the law of diminishing marginal returns begins to apply
• B)will fall once the law of diminishing marginal returns begins to apply
• C)will rise if increasing returns to scale apply
• D)will be vertical if constant returns to scale apply
• E)is based on the assumption that all resources are variable

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Definitions:

Theoretical Positions

Philosophical stances or frameworks that underpin a researcher's or practitioner's understanding and analysis of phenomena in their field of study.

Sensation Thinkers

Individuals who prefer using their senses to process information and focus on details and facts in decision-making, often practical and straightforward.

Intuitive Thinkers

Individuals who rely on intuition and gut feelings to make decisions and solve problems, often without explicit reasoning.

Hard Facts

Concrete, objective data or evidence that is indisputable and can be verified.