When the Long-Run Average Cost Curve Is Downward Sloping

question 209

Multiple Choice

When the long-run average cost curve is downward sloping,

• A) economies of scale are present.
• B) diseconomies of scale are present.
• C) the firm experiences constant returns to scale.
• D) the average fixed cost curve must be upward sloping.
• E) The premise of the question is wrong because long-run average cost curves never slope downward.

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Definitions:

Therapy

A treatment intended to relieve or heal psychological disorders or difficulties, often involving structured sessions with a trained professional.

Personality Disorders

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating markedly from those accepted by the individual's culture.

Mental Retardation

An outdated and offensive term for intellectual disability, characterized by significant limitations in intellectual functioning and adaptive behavior.

Axis II

In the context of the DSM (Diagnostic and Statistical Manual of Mental Disorders), it refers to personality disorders and intellectual disabilities.