Which of the Following Strategies Would Be Classified as Active

question 25

Multiple Choice

Which of the following strategies would be classified as active according to uncertainty reduction theory?

• A) asking a friend to find out if someone you are interested in is already dating someone else
• B) asking someone out on a date
• C) unobtrusively observing someone at a party
• D) both a and b

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Long-run Average Total Costs

The average cost per unit of output where all inputs, including capital, are variable and the firm has adjusted all inputs to find the lowest average cost.

Long-run Marginal Cost

The change in total cost when producing one additional unit of a product or service in the long term, where all inputs are considered variable.

Economies of Scale

Enterprises gain cost benefits from their operation size, as the cost for each unit produced typically drops when the scale enlarges because fixed expenses are distributed across a greater number of output units.