Suppose That in 2010 ABC Corp

question 208

Multiple Choice

Suppose that in 2010 ABC Corp. produced 500 million units of a good at an average cost of $2, and in 2011 ABC Corp. expanded its plant capacity and produced 600 million units at an average cost of $1.80. In this range, one can conclude that ABC Corp. is experiencing:

• A)economies of scale.
• B)diseconomies of scale.
• C)neither economies of scale or diseconomies of scale.
• D)diminishing marginal product.

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Definitions:

Induction

The process of reasoning or argument that moves from specific instances to a general conclusion.

Power Assertion

A discipline strategy that involves the use of authority or power by a parent or guardian, such as physical punishment or the removal of privileges, to control or correct a child's behavior.

Permissiveness

An educational or parenting style characterized by low demands with high responsiveness, where children are allowed considerable freedom.

Self-Regulation

The ability to manage one's thoughts, emotions, and actions in pursuit of long-term goals, critical in personal development and psychological wellbeing.