When Long-Run Average Costs Increase as a Result of Industry

question 149

Multiple Choice

When long-run average costs increase as a result of industry growth, there are

• A) internal economies.
• B) internal diseconomies.
• C) external economies.
• D) external diseconomies.

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Definitions:

Resentment

A feeling of bitterness or indignation experienced as a result of unfair treatment or perceived injustice.

Consequences

The outcomes or effects that result from a particular action or set of conditions.

Punishment

The imposition of a penalty as retribution for an offense, with the intention of discouraging undesirable behavior.

External Locus

The belief that one's outcomes or fate are controlled by external forces or the environment, as opposed to internal factors or personal effort.