A 10-Year-Old Child Who Scored Like an Average 8-Year-Old on an Intelligence

question 130

True/False

A 10-year-old child who scored like an average 8-year-old on an intelligence test would have an IQ of 80.

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Definitions:

Diseconomies of Scale

A situation in which a firm experiences an increase in average costs due to an increase in its size or output level, often resulting from inefficiencies and higher per unit costs.

Economies of Scale

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

Demand Curves

Visual diagrams that illustrate the connection between a product's price and the amount consumers are willing to buy.

MC = MR

An economic principle that firms reach the optimal level of production when marginal cost equals marginal revenue.