In an Increasing-Cost Industry, an Increase in Output Will Lead

question 184

Multiple Choice

In an increasing-cost industry, an increase in output will lead to

• A) an downward shift in the ATC curve.
• B) an downward shift in the MC curve.
• C) a reduction in long-run per-unit costs.
• D) an increase in long-run per-unit costs.

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Definitions:

Social Contagion

The phenomenon where attitudes, behaviors, or emotions spread through a group or community, often unconsciously.

Social Loafing

Each person’s tendency to exert less effort in a group because of reduced accountability for individual effort.

Group Polarization

The tendency for a group's prevailing attitudes or beliefs to become more extreme after discussing them as a group.

Social Facilitation

Improvement in an individual’s performance because of the presence of others.