When a decrease in the scale of production leads to higher average costs, the industry exhibitsGroup of answer choicesdiminishing returns.increasing returns to scale.decreasing returns to scale.constant returns to scale.

On the downward sloping portion of a firm's long run average cost curve, it is experiencingGroup of answer choiceseconomies of scale.constant returns to scale.diseconomies of scale.diminishing marginal returns.

When an industry is a natural monopoly,Group of answer choicesa larger number of firms will lead to a higher average total cost.it is characterized by constant returns to scale.it is characterized by diseconomies of scale.a larger number of firms may lead to a lower average total cost.

What best describes diseconomies of scale?Cost advantages that larger firms often enjoySavings in costs achieved by increasing the scale of productionThe rising average cost per unit that occurs when a company increases its output beyond a certain levelThe potential profit increase due to economies of scale

If the slope of a total production function decreases as one input increases, the firm's underlying production function exhibits:a.increasing returns to scale.b.constant returns to scale.c.decreasing returns to a factor input.d.decreasing returns to scale.

Nonrivalry of ideas and the standard replication argument imply the production function will haveGroup of answer choicesincreasing returns to scale.decreasing returns to scale.constant returns to scale.Pareto optimality.