Catherine and Gabriel Are Picnicking in the Park

question 149

Multiple Choice

Catherine and Gabriel are picnicking in the park. They would be LEAST likely to litter when __________.

• A) they notice that the park is completely free of litter
• B) a park official tells them about the fines for littering
• C) they see one piece of garbage on the otherwise clean park grounds
• D) they see other people throw away their garbage

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Definitions:

Economies of Scale

The cost advantage that arises with increased output of a product, where costs per unit decrease due to efficiencies gained from larger scale operations.

Long-Run Average Cost Curve

A curve showing the lowest possible cost at which a firm can produce any given level of output in the long run when all inputs are variable.

Downward Sloping

Describes a line or curve on a graph that shows a decrease in value as it moves from left to right, often used in economics to describe how changes in price affect demand.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.