If an Increase in Production Increases Your Firm's Short- Run

question 100

Multiple Choice

If an increase in production increases your firm's short- run average total cost, your firm is likely experiencing ________and should consider ________ output levels.

• A)economies of scale; expanding
• B)diseconomies of scale; expanding
• C)economies of scale; contracting
• D)diseconomies of scale; contracting

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Definitions:

Trajectory

The path or progression of an object, a disease, or an individual's life or career over time.

Insufficiency

A lack or deficiency of something necessary, often resulting in an inability to function effectively or achieve intended outcomes.

Discrepancy

A lack of compatibility or similarity between two or more facts.

Conceptual Goal

A specific, abstract outcome that an individual or organization aims to achieve, often guiding plans and actions.