An Increase in Long-Run Average Costs Resulting from Decreases in Output

question 348

Multiple Choice

An increase in long-run average costs resulting from decreases in output is

• A) attributed to the law of diminishing marginal product.
• B) attributed to constant returns to scale.
• C) attributed to economies of scale.
• D) attributed to diseconomies to scale.

---

Definitions:

Customer Benefit Approach

A sales strategy focusing on communicating the advantages and positive outcomes that a customer will gain from a product or service.

Referral

The act of recommending a product, service, or company to someone else, often based on personal experience.

Complimentary

Expressing a polite or flattering comment towards someone or something, or items given for free in connection with a purchase or promotional activity.