Which of the Following Explains the Shape of the Long-Run

question 53

Multiple Choice

Which of the following explains the shape of the long-run average cost curve?

• A)Returns to scale
• B)Returns to labor
• C)Returns to capital
• D)Rental rate on capital

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Conformity

The act of matching attitudes, beliefs, and behaviors to what individuals perceive as normal to their society or social group.

Changing Norms

The process by which societal expectations or standards of behavior evolve over time.

Group Effectiveness

This term describes the degree to which a group achieves its objectives, maintains cohesive relationships among members, and adapts to changing circumstances.