When Long-Run Average Costs Decrease as Output Increases, There Are

question 390

Multiple Choice

When long-run average costs decrease as output increases, there are

• A) economies of scale.
• B) diseconomies of scale.
• C) constant returns to scale.
• D) constant marginal costs.

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Definitions:

Contingent Decisions

Contingent decisions are decisions made based on certain conditions or situations arising, meaning they are dependent on particular events or circumstances.

Nonprogrammed Decisions

Decisions that are unique, require custom solutions, and are typically made in response to situations that are novel, unstructured, and not anticipated.

Programmed Decisions

Decisions that are routine and repetitive, often automated, and based on established policies or procedures.

Decision Rules

Guidelines or criteria used to select from among alternatives in decision-making processes, often simplifying the evaluation of options.