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:

Obsessive

Characterized by persistent, intrusive, and unwanted thoughts or behaviors that are difficult to suppress or ignore.

Phobic

Pertaining to an irrational and excessive fear of a particular object, situation, or activity.

Amnesiac

An individual suffering from amnesia, the loss of memory about events or information that is typically known, often due to injury or psychological trauma.

Concordance Rate

A statistical measure used in genetics that indicates the likelihood of two individuals with a shared genetic condition both exhibiting that condition.