"Every Time I Take It, It Tells Me Something Different!

question 83

Multiple Choice

"Every time I take it, it tells me something different!" complains your friend, turning away from the online personality quiz she just completed. Your friend is complaining about the test's __________.

• A)construct validity
• B)external validity
• C)reliability
• D)statistical significance

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Definitions:

Long-run Marginal Cost

The change in total cost when producing one additional unit of a product or service in the long term, where all inputs are considered variable.

Economies of Scale

Enterprises gain cost benefits from their operation size, as the cost for each unit produced typically drops when the scale enlarges because fixed expenses are distributed across a greater number of output units.

Efficient Scale

The level of production at which a firm can produce its product at the lowest average cost per unit.

Economies of Scale

Economies of scale describe the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.