Nathan Owns a Coffee-Roasting Company

question 40

Multiple Choice

Nathan owns a coffee-roasting company. If he increases the size of his company and experiences constant returns to scale as a result, his long-run average total cost curve should be:

• A) vertical.
• B) downward-sloping.
• C) upward-sloping.
• D) horizontal.
• E) U-shaped.

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Definitions:

Progeria

A rare genetic disorder characterized by accelerated aging in children.

Hirsutism

The excessive growth of hair in unusual areas of the body in women, often as a result of hormonal imbalance.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in the body's fight-or-flight response.

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.