(Figure: Long-Run and Short-Run Average Cost Curves)Use Figure: Long-Run and Short-Run

question 245

Multiple Choice

(Figure: Long-Run and Short-Run Average Cost Curves) Use Figure: Long-Run and Short-Run Average Cost Curves.If a firm is producing at point C on the ATC₂ but anticipates increasing output to 225,000 units in the long run,the firm will build a _____ plant and have _____ of scale.

• A)smaller;economies
• B)smaller;diseconomies
• C)bigger;economies
• D)bigger;diseconomies

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.