Increasing Returns to Scale for a Firm Is Shown Graphically

Multiple Choice

Increasing returns to scale for a firm is shown graphically by

A) a downward-sloping long-run average cost curve.
B) an upward-sloping long-run average cost curve.
C) a horizontal long-run average cost curve.
D) a vertical long-run average cost curve.
E) None of the above; returns to scale have nothing to do with the shape of the long-run average cost curve.