Increasing Returns to Scale Is Characterized By

question 56

Multiple Choice

Increasing returns to scale is characterized by:

• A) constantly declining fixed costs.
• B) diseconomies of scale; that is, the average cost falls as output rises.
• C) economies of scale; that is, the average cost rises as output rises.
• D) diseconomies of scale; that is, the average cost is constant as output rises.
• E) economies of scale; that is, the average cost falls as output rises.

---

Definitions:

Local Ordinance

A law or regulation enacted by a municipal or county government specific to the area under its jurisdiction.

Public Policy

Principles and standards considered by a government in the interest of all citizens that guide legislative, regulatory, and judicial actions.

Strict Liability

A legal standard that holds parties responsible for damages or injuries caused by their actions or products, regardless of fault or intent.

Unreasonably Dangerous Products

Products that pose a risk of injury to the consumer beyond what would be expected through typical use.