The Figure Given Below Shows Three Short Run Average Total

question 51

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Which of the following statements is true?

• A)When long-run average total costs are increasing, the firm enjoys economies of scale.
• B)Most industries exhibit long-run average costs that are shaped like an upside-down U.
• C)Constant returns to scale occur when the short-run average-total-cost curve is horizontal.
• D)When long-run average total costs are increasing, the firm has diseconomies of scale.
• E)Constant returns to scale are never present in the real world.

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Definitions:

Psychotherapist

A trained professional who treats mental health problems and emotional challenges through talking therapies and psychological treatments.

Personal Distress

A form of emotional discomfort or pain in response to the distress or suffering of others.

Self-Concept

An individual's understanding and perception of themselves, encompassing their beliefs, characteristics, and attitudes.

Incongruence

A state where there is a mismatch between one’s self-concept and reality, often leading to psychological distress.