Which statement must be false? a) When a firm has increasing returns to scale in production, its marginal cost curve will be downward sloping. b) When a firm has constant returns to scale, its total cost curve will be an upward sloping line. c) When a firm has diminishing returns to scale in production, its average cost curve will be upward sloping. d) Every firm faces eventually diminishing returns to scale, where its average cost curve reaches its minimum.
Which statement must be false? a) When a firm has increasing returns to scale in production, its marginal cost curve will be downward sloping. b) When a firm has constant returns to scale, its total cost curve will be an upward sloping line. c) When a firm has diminishing returns to scale in production, its average cost curve will be upward sloping. d) Every firm faces eventually diminishing returns to scale, where its average cost curve reaches its minimum.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which statement must be false?
a) When a firm has increasing returns to scale in production, its marginal cost curve will be downward sloping.
b) When a firm has constant returns to scale, its total cost curve will be an upward sloping line.
c) When a firm has diminishing returns to scale in production, its average cost curve will be upward sloping.
d) Every firm faces eventually diminishing returns to scale, where its average cost curve reaches its minimum.
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