In General, Those in the Lowest Positions Within a System

question 24

Multiple Choice

In general, those in the lowest positions within a system of inequality

• A)are respected because their lives are such a struggle.
• B)are looked down upon by others, causing them to look down upon themselves.
• C)know that they are better than those at the top of the system.
• D)have higher self-worth than others because they really do not care about how others see them.

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Definitions:

Constant Returns to Scale

A situation in which output increases by the same proportion as inputs when the scale of production is changed.

Long-run Average Total Cost

The average total cost when all factors of production are variable and economies of scale are fully exploited, indicating the lowest possible cost per unit.

Economies of Scale

Economies of scale refer to the cost advantage that arises with an increased output of a product, as fixed costs are spread out over more units of production, leading to a decrease in the per-unit cost.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's production scale becomes too large, leading to inefficiencies.