Several Students Sitting Together in a Student Lounge Studying for an Exam

question 41

Multiple Choice

Several students sitting together in a student lounge studying for an exam may BEST be defined as a study group based on which organizational rule?

• A)rule of similarity
• B) rule of contrast
• C) rule of proximity
• D)rule of context

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Definitions:

Returns to Scale

The rate at which production output increases in response to proportional increases in all inputs.

Average Cost

The average cost is the total cost of production divided by the number of units produced, reflecting the cost per unit of output.

Marginal Cost

The supplementary expenditure required to produce an extra unit of a product or service.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.