If, When a Firm Doubles All Its Inputs, Its Average

question 76

Multiple Choice

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays

• A)diminishing returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)declining fixed costs.

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Definitions:

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources.

Distributive Justice

concerns the fair allocation of resources and rewards among individuals in a society or group, based on principles of equity.

Conflict

A situation or process in which individuals, groups, or organizations have disagreements, disputes, or incompatibilities, often leading to a confrontation.

Bilateral Threat

A situation where two parties perceive each other as potential threats, often leading to escalated tensions or conflict.