If the Slope of a Long-Run Total Cost Function Decreases

question 17

Multiple Choice

If the slope of a long-run total cost function decreases as output increases, the firm's underlying production function exhibits:

• A) constant returns to scale.
• B) decreasing returns to scale.
• C) decreasing returns to a factor input.
• D) increasing returns to scale.

---

Definitions:

Catharsis Hypothesis

The theory suggesting that expressing or releasing strong emotions leads to a relief from those emotions, often resulting in a sense of rejuvenation and reduction in stress.

Two-Factor Theory

A theory in psychology, often related to emotion or motivation, suggesting two factors are necessary to produce a certain outcome or effect.

Adaptation-Level Phenomenon

The psychological principle that states individuals judge new experiences based on their past experiences.

James-Lange Theory

A theory suggesting that emotions are the result of physiological reactions to events.