An Industry Experiencing Increasing Returns to Scale and Fixed Factor

question 77

Multiple Choice

An industry experiencing increasing returns to scale and fixed factor prices will have a long-run supply curve that is:

• A) vertical.
• B) horizontal.
• C) upward sloping.
• D) downward sloping.

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Definitions:

Affective Forecasting

The process by which individuals predict their future emotional states or how they will feel in response to future events.

Ego Depletion

The theory that self-control or willpower draws upon a limited pool of mental resources that can be used up.

Physical Arousal

Pertains to the physiological responses of the body that prepare an individual for action, often associated with emotions, exercise, or sexual interest.

Ironic Processing

The psychological process where attempts to suppress certain thoughts make them more likely to surface.