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 horizontal long- run average cost curve.
B) a downward- sloping long- run average cost curve.
C) an upward- sloping 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.