The Above Diagram Shows the Short-Run Average Total Cost Curves

question 153

Multiple Choice

The above diagram shows the short-run average total cost curves for five different plant sizes of a firm.The shape of each individual curve reflects:

• A) increasing returns,followed by diminishing returns.
• B) economies of scale,followed by diseconomies of scale.
• C) constant costs.
• D) increasing costs,followed by decreasing costs.

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Definitions:

Connection

A relationship in which a person, thing, or idea is linked or associated with something else.

Ultimatum Game

A game in economic experiments where one player offers how to divide a sum of money with another player who can accept or reject the offer.

Minimum Offers

The lowest terms or conditions that a party is willing to accept in a negotiation process.

Task Characteristics

Features or attributes of a task that influence how it is perceived, organized, and performed.