When There Are Economies of Scale in the Production of a Product

question 120

Multiple Choice

When there are economies of scale in the production of a product, the long-run average total cost curve

• A)increases as output increases.
• B)sometimes increases and sometimes decreases as output increases.
• C)does not change as output increases.
• D)declines as output increases.
• E)is horizontal.

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Definitions:

Internal Locus

Internal Locus refers to a belief that individuals control their own destiny and outcomes are a result of their actions rather than external factors.

External Locus

A belief system or psychological orientation that attributes success or failure to external factors beyond one's control.

Control

In management and organizational contexts, refers to the processes and systems in place that ensure activities and outputs meet the organization’s objectives and standards.

Consumer Decision

The process by which individuals select, purchase, use, and dispose of goods and services, influenced by various personal and environmental factors.