Deziree, Rieshel, and Olivia are discussing cost curves over a Carmel Rotti Twist at Spike's Coffee Lounge.
Deziree contends that an increasing
-
cost industry is an industry in which costs rise in the long run as output rises.
Rieshel believes that an industry can have decreasing costs in the long run as output expands.
Olivia is certain that an industry can expand in the long run even as costs remain constant.
Select the most correct statement.
Deziree and Olivia are both correct, but Rieshel is not.
Deziree and Rieshel are both correct, but Olivia is not.
Deziree, Rieshel, and Olivia are all correct.
Rieshel and Olivia are both correct, but Deziree is not.
Olivia is the only one who is correct, as constant
-
cost industries have costs that are constant in the long run.
Deziree is the only one who is correct, as increasing
-
cost industries have costs that increase in the long run.
Rieshel is the only one who is correct, as decreasing
-
cost industries have costs that decrease in the long run