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Bill's behaviors in Ms. Kennedy's class are really distracting to other students. For example,he whispers to the boy beside him when Ms. Kennedy is giving directions on how to do any assignment. He flings paper clips at a girl across the room. He makes strange grunting noises that a few classmates find amusing. Ms. Kennedy glares at him or admonishes him whenever he behaves in a distracting way,yet his inappropriate behaviors are increasing rather than decreasing. Which one of the following interpretations best explains why Bill's behaviors are increasing?
Returns to Scale
The rate at which output increases as inputs are increased proportionally in the production process.
Scale of Production
The level at which a production process is operating, ranging from small to large scale based on output volume and capacity.
Economies of Scale
Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.
Average Total Cost
The total cost of production divided by the total quantity produced, indicating the per unit cost of production.
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