Studies That Compare the Wages of More Risky and Less

question 385

Multiple Choice

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

• A)$1 million.
• B)$5 million.
• C)$10 million.
• D)$20 million.

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Definitions:

Diseconomies of Scale

Diseconomies of scale occur when a business expands to the point where the costs of managing and coordinating operations increase, leading to a rise in the average costs.

Economies of Scale

Cost advantages reaped by companies as a result of scale of operation, leading to a reduction in the per-unit cost of production.

Long-Run Average Cost Curve

A graphical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

ATC

The abbreviation for Average Total Cost, which is the total cost divided by the number of goods produced.