The Larger the Output, the Greater the Quantity of Output

question 236

Multiple Choice

The larger the output, the greater the quantity of output over which fixed cost is spread.Called the ________ effect, this leads to a _.

• A)spreading; lower average fixed cost.
• B)spreading; higher average fixed cost.
• C)diminishing returns; lower average variable cost.
• D)diminishing returns; higher average variable cost.

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Definitions:

Behaviourism

A psychological approach that emphasizes the study of observable behaviors and their environmental determinants.

Humanism

An outlook or system of thought attaching prime importance to human rather than divine or supernatural matters.

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Biological Psychology

A branch of psychology concerned with the links between biology and behavior, exploring how brain, nervous system, and other biological processes influence mental processes and behavior.