1. The LRATC curve is

A) upward sloping at every quantity.
B) downward sloping at every quantity.
C) constant at every quantity.
D) an envelope of all SRATC curves.
E) the same as the SRATC curve.

2. If the LRATC curve is falling, this is called:

A) deconomies of scale.
B) diseconomies of scale.
C) diminishing marginal returns.
D) economies of scale.
E) constant returns to scale.

3. If the LRATC curve is rising, this is called:

A) deconomies of scale.
B) diseconomies of scale.
C) diminishing marginal returns.
D) economies of scale.
E) constant returns to scale.