In an Increasing-Cost Industry, an Increase in Output Will Lead

question 184

Multiple Choice

In an increasing-cost industry, an increase in output will lead to

• A) an downward shift in the ATC curve.
• B) an downward shift in the MC curve.
• C) a reduction in long-run per-unit costs.
• D) an increase in long-run per-unit costs.

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Definitions:

Inefficiency

A situation where resources are not used in the most productive way, leading to waste or a loss of potential value in an economy or system.

Individual Income Taxes

Taxes levied on the income of individuals, with the tax rate often varying according to income levels.

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A politically organized body of people under a single government, often synonymous with "country" or "nation."

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Administrative bodies that govern smaller geographical areas within a country, often responsible for local policies and laws, public services, and community issues.