If a Firm's Long- Run Average Cost Remains at $4

question 42

Multiple Choice

If a firm's long- run average cost remains at $4 when output increases, the firm is experiencing _______.

• A)economies of scale
• B)constant returns to scale
• C)diseconomies of scale
• D)a shift in its long- run average cost curve

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Definitions:

Cognitive Reactions

Mental processes as responses to external stimuli, involving perception, memory, judgment, and reasoning.

Emotional Reactions

The spontaneous and subjective feelings triggered by specific stimuli or events.

Zajonc

Refers to Robert Zajonc, a social psychologist known for his work on social and cognitive processes in emotions.

Blood Pressure

The force exerted by circulating blood on the walls of the body's arteries, a critical indicator of cardiovascular health.