A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached regarding the firm's returns to scale? [1] The firm experiences increasing returns to scale. [2] The firm experiences increasing, constant, and decreasing returns in that order. The firm experiences first decreasing, then increasing returns to scale. [3] [4] The short-run average cost curve reveals nothing regarding returns to scale. [5] None of the options [1], [2], [3] and [4] provides a correct answer.

A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached regarding the firm's returns to scale? [1] The firm experiences increasing returns to scale. [2] The firm experiences increasing, constant, and decreasing returns in that order. The firm experiences first decreasing, then increasing returns to scale. [3] [4] The short-run average cost curve reveals nothing regarding returns to scale. [5] None of the options [1], [2], [3] and [4] provides a correct answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following represents a long-run decision for the firm? a. rehiring workers who were previously laid off. b. determining what price to charge for a given level of output. c. deciding how much output to supply to the market at the current market price. d. building another wing on the plant in order to add a new assembly line. answer. (d. building another wing on the plant in order to add a new assembly line.) Please help me explain this questions. Thanks in advance
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