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

Question

Share Report Error

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

A. It is upward sloping

B. It is downward sloping

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

D. It is horizontal

Answer: Option B

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

The term 'Core Inflation' is useful for policy makers because it:

A. Excludes food and fuel prices to reveal underlying inflation trends

B. Measures only food inflation

C. Is always higher than headline inflation

D. Includes all volatile items

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Core inflation excludes volatile components such as food and energy, providing a clearer picture of persistent inflationary pressures for monetary policy decisions.

This question belongs to: Economy GK Economy Set 1

Question #2

Share Report

The 'World Development Report' is published by:

A. UNCTAD

B. IMF

C. World Bank

D. WTO

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The World Development Report is published by the World Bank.

This question belongs to: Economy GK Economy Set 1

Question #3

Share Report

The 'Gross National Product at market prices' equals GDP at market prices plus:

A. subsidies

B. indirect taxes

C. net factor income from abroad

D. depreciation

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
GNP at market prices = GDP at market prices + net factor income from abroad.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs