Which of the Following Statements About an Increasing-Returns-To-Scale Industry Is

question 26

Multiple Choice

Which of the following statements about an increasing-returns-to-scale industry is not true?

• A)It will tend to concentrate production in the hands of a very few large firms.
• B)Firms in the industry face higher costs per unit of production as their level of output increases.
• C)Opportunity costs may fall with the level of output.
• D)Proponents of strategic trade policy contend that tariffs can be used to stimulate production by a domestic industry capable of achieving increasing returns to scale.
• E)The costs of producing a unit of output fall as more output is produced.

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Definitions:

Negatively Worded

Referring to questions or statements that are phrased in a manner that assumes a negative outcome or context.

Graphic

A visual representation of data or information designed to make complex ideas more easily understandable.

Semantic Differential

A scale used for measuring the meaning of things and concepts, typically involving polar adjectives.

Behavioral Measure

Tools or methods used to quantitatively assess specific actions or responses of individuals.