Diseconomies of Scale Are Said to Exist When Inputs Are

question 98

Multiple Choice

Diseconomies of scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.

• A)greater; fall
• B)smaller; fall
• C)greater; rise
• D)smaller; rise
• E)equal; fall

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Definitions:

Liquidated Damages

are a predetermined form of compensation specified within a contract, payable for a breach of contract, where actual damages are difficult to ascertain.

Unreasonable

Not guided by or based on good sense or logic; excessive or beyond reasonable limits.

Exclusive Personal Services

Contractual agreements where an individual agrees to provide their services exclusively to a single employer or client.

Independent Contractor

An individual who provides goods or services to another entity under terms specified in a contract or within a verbal agreement, not considered an employee.