Suppose a Firm Producing Digital Cameras Is Operating Such That

question 111

Multiple Choice

Suppose a firm producing digital cameras is operating such that marginal costs are higher than average costs. If the firm produces one more camera, average costs will

• A) rise.
• B) reach a point of diminishing returns.
• C) fall.
• D) reach their maximum.
• E) remain constant.

---

Definitions:

Need For Power

The desire to control, influence, or be responsible for other people.

Acquired Needs Theory

A motivational theory that suggests human needs for achievement, affiliation, and power are developed over time based on life experiences.

Need For Power

An individual's desire for influence or control over others, motivating them to seek positions of authority.

Need For Affiliation

The desire to establish and maintain good relations with people.