When a Firm Experiences Economies of Scale

question 175

Multiple Choice

When a firm experiences economies of scale,

• A)short-run average total cost is maximized.
• B)long-run average total cost is maximized.
• C)long-run average total cost decreases as output increases.
• D)long-run average total cost increases as output increases.

---

Definitions:

Voluntary

Refers to actions or services performed out of free will without any coercion or legal obligation.

Threats

Potential causes of harm or danger to individuals, organizations, or systems, stemming from various sources like environmental conditions, cyber-attacks, or competitive actions.

Work Avoidance

Behaviors or attitudes aimed at evading tasks or responsibilities, often due to lack of motivation or fear of failure.

Environmental Changes

pertain to alterations in the external surroundings that can impact an organization, including economic, social, technological, and ecological factors.