Friendships with Former Clients

question 9

Multiple Choice

Friendships with former clients:

• A) are prohibited by the ACA Code of Ethics.
• B) are allowed, under specified conditions, by the ACA Code of Ethics.
• C) generally, should be avoided because they create a potential for problems.
• D) occur infrequently because most counselors disapprove of them in all circumstances.
• E) have been entered into by about 95% of all counselors.

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Definitions:

Constant-Cost Industry

An industry in which the cost per unit does not change as the industry's overall output changes.

Diseconomies of Scale

The condition in which a company or production process becomes less efficient as it grows larger, leading to increased costs per unit.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms make no economic profit or loss.

Long-Run Average Cost Curve

A graphical representation showing the minimum average cost of producing any given level of output when all inputs, including capital, are variable.