Which of the following is a feature of the long-run average cost curve under increasing returns to scale? MCQ with Answer and Explanation

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Which of the following is a feature of the long-run average cost curve under increasing returns to scale?

A. It is U-shaped only due to fixed factors

B. It is horizontal

C. It is upward sloping

D. It is downward sloping

Answer: Option D

Solution (By JKSSB Mock Tests)

Under increasing returns to scale, long-run average cost falls as output expands, resulting in a downward-sloping LAC curve over the relevant range.

This question belongs to: Economy GK Economy Set 1

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Question #1

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Which of the following is NOT a type of inflation based on speed?

A. Walking inflation

B. Creeping inflation

C. Galloping inflation

D. Demand-pull inflation

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Correct Answer: Option D

Explanation:
Demand-pull inflation is a classification based on cause. Based on speed/intensity, inflation is classified as creeping, walking, running and galloping (or hyperinflation).

This question belongs to: Economy GK Economy Set 1

Question #2

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Marginal cost intersects the average total cost curve at its:

A. maximum point

B. point of inflection

C. starting point

D. minimum point

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Correct Answer: Option D

Explanation:
Marginal cost intersects average total cost at its minimum point.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'International Court of Justice' is the principal judicial organ of:

A. World Bank

B. European Union

C. United Nations

D. WTO

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Correct Answer: Option C

Explanation:
The International Court of Justice is the principal judicial organ of the United Nations.

This question belongs to: Economy GK Economy Set 1

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