If Long-Run Costs Are Plotted on the Vertical Axis and Quantity

question 16

Multiple Choice

If long-run costs are plotted on the vertical axis and quantity of output plotted on the horizontal axis,a line that is perfectly horizontal implies:

• A)constant returns to scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)inefficient use of capital.
• E)inefficient use of labor.

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Definitions:

Netnography

A research methodology that adapts ethnographic techniques to study the cultures and communities that emerge through the internet.

Sampling Types

Different methodologies used in statistical analysis for selecting a subset of individuals or items from a population to estimate characteristics of the whole population.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Nonprobability

A sampling technique where elements of the population do not have a known or predetermined chance of being selected.