When a fiRm Experiences Economies of Scale, _____

question 55

Multiple Choice

When a firm experiences economies of scale, _____.

• A) its marginal cost of production increases with every additional unit of output that is produced
• B) its long run average costs decrease as output increases
• C) its fixed cost curve becomes horizontal
• D) its output increases at a slower rate than the increase in inputs

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Definitions:

Perception

The process by which individuals organize and interpret sensory information to give meaning to their environment.

Relationships

Connections or associations between people, whether emotional, biological, social, or professional.

Social Cognition

The study of how people process, store, and apply information about other people and social situations.

Social Influences

The effects that the words, actions, or mere presence of other people have on an individual's thoughts, feelings, attitudes, or behavior.