All of the Following,except One,would Result in Lower Average Cost

question 111

Multiple Choice

All of the following,except one,would result in lower average cost.Which is the exception?

• A)An increase in output if the firm was operating below its capacity output.
• B)Building a larger plant if the firm was experiencing increasing returns to scale.
• C)Down-sizing the scale of operations if the firm was experiencing diseconomies of scale.
• D)Down-sizing the scale of operations if the firm was experiencing constant returns to scale.

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Definitions:

Business Performance

The measurement of the effectiveness and efficiency of a company's operations, often evaluated through financial metrics, productivity, and customer satisfaction.

Accurate Information

Data or details that are correct, precise, and free of errors, providing a true representation of facts or reality.

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral expression.

Psychological Empowerment

The perception of having control over one's work environment, leading to increased motivation, job satisfaction, and performance.