If a Firm Increases Its Output and Its Average Cost

question 44

Multiple Choice

If a firm increases its output and its average cost decreases, the firm is experiencing which of the following?

• A) Increasing marginal returns
• B) Diseconomies of scale
• C) Decreasing cost of marginal returns
• D) Random luck
• E) Economies of scale

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Definitions:

Ethnomethodology

A sociological perspective focused on the ways people use everyday conversation and gestures to construct a shared social reality.

Phenomenology

A philosophical approach that focuses on the structures of experience and consciousness from the first-person perspective.

Talcott Parsons

A prominent American sociologist known for his theories on social systems, action theory, and for his role in developing structural functionalism.

European Tradition

Relates to the social, cultural, historical, and intellectual heritage of Europe.