A Firm Scaled Down Its Operation by Reducing All Inputs

question 184

Multiple Choice

A firm scaled down its operation by reducing all inputs by 50% and experienced a more-than-50% decrease in output. If all input prices remain unchanged, the firm's long-run average cost exhibits

• A) economies of scale at the current output level.
• B) diseconomies of scale at the current output level.
• C) a constant long-run average cost at the current output level.
• D) diminishing marginal returns at the current output level.

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Definitions:

Intersectionality

A framework for understanding how aspects of a person's social and political identities (gender, race, class, sexuality, etc.) combine to create different modes of discrimination and privilege.

Action Research

A participatory research methodology focusing on problem-solving and improvement of practices through a cyclical process of planning, acting, observing, and reflecting.

Investigation

The act of conducting an organized inquiry or systematic study to discover facts or information.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through methods like teaching, training, storytelling, and research.