An important reason why diseconomies of scale arise is because firms may have to hire lower-skilled workers as firms expand

When aggregate expenditure falls short of the level needed to generate a full- employment, noninflationary equilibrium, then a recessionary gap exists

Indicate whether the statement is true or false

If a firm has increasing returns to scale at all levels of output, the

a. slope of its long-run total cost curve is always negative. b. slopes of its short-run average cost curves are always negative. c. slope of its long-run average cost curve is always negative. d. slope of its production function is always negative.