A Firm Whose Production Function Displays Increasing Returns to Scale

question 7

Multiple Choice

A firm whose production function displays increasing returns to scale will have a total cost curve that is

• A)a straight line through the origin.
• B)a curve with a positive and continually decreasing slope.
• C)a curve with a positive and continually increasing slope.
• D)a curve with a negative and continually decreasing slope.

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Definitions:

Lead

The initial stage in a process or the position of advantage in a competitive situation.

Manage

To control or direct the use of resources effectively to achieve specific objectives or outcomes.

Relationship Management

The practice of maintaining and improving relationships between an organization and its clients, customers, employees, or partners.

Fiedler's Contingency Theory

A leadership theory suggesting that a leader's effectiveness is contingent upon how well their leadership style matches the situation.