When Long-Run Average Cost Decreases as Output Increases, There Are

question 456

Multiple Choice

When long-run average cost decreases as output increases, there are definitely I. increasing marginal returns.
II) economies of scale.

• A) only I
• B) only II
• C) both I and II
• D) neither I nor II

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Definitions:

Two-week Paid Vacation

A standard employee benefit in many organizations, offering a prolonged period of paid time off, typically two weeks, for rest and recreation.

Equity Theory

A theory in social psychology that explains how individuals perceive the fairness of their input-output ratios in comparison to others, affecting their motivation and satisfaction.

Outcome

The result or consequence of an action, process, or situation, often used to evaluate effectiveness.

Fringe Benefits

Fringe benefits are additional compensations given to employees beyond their regular salaries or wages, such as health insurance, paid vacation, and retirement plans.