Assume That an Industry Requires a Very Specialized Technology That

question 123

Multiple Choice

Assume that an industry requires a very specialized technology that involves high start-up costs for new firms no matter what level of output they produce.In the long run,at low levels of output,these firms will tend to exhibit

• A)diminishing marginal returns
• B)increasing marginal returns
• C)diseconomies of scale
• D)constant returns to scale
• E)economies of scale

---

Definitions:

Degrees of Freedom

In statistics, the number of independent values or quantities that can be assigned to a statistical distribution.

Distribution Table

A table that displays the frequency of various outcomes in a sample, often used in statistics to organize data.

Rule of Five

A statistical rule stating that if a sample size is very small (n=5), the median can serve as an estimate of the population mean under certain conditions.

Observed Frequency

The observed frequency is the actual number of times an event occurs in a dataset or experiment.