A Firm Experiences ________ When Its ________ as Output Increases

question 47

Multiple Choice

A firm experiences ________ when its ________ as output increases.

• A)economies of scale;long-run average cost curve slopes downward
• B)diseconomies of scale;average total cost curve slopes downward
• C)economies of scale;long-run average cost curve shifts upward
• D)diminishing marginal returns;average total cost curve shifts upward
• E)constant returns to scale;long-run average cost curve shifts upward

Comprehend the principles of equilibrium theory in predicting personal space needs.

Identify the characteristics of third places and their role in social interaction.

Recognize the influence of cultural background on personal space preferences.

Describe the factors influencing ambience and their psychological effects.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity.

Geegaws

Ornamental objects of no substantial value, often considered trinkets or gadgets.

Doodads

Informal term for small objects or gadgets, often of little value and used for decoration or trivial purposes.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination by supply and demand.