If a Product Exhibits Increasing Returns to Scale, Then the Average

question 4

Multiple Choice

If a product exhibits increasing returns to scale, then the average cost of making the product will ______ as a company produces more of it?

• A) Increase.
• B) Decrease.
• C) Remain the same.
• D) There is insufficient information provided to answer the question.

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Definitions:

Adherence

The act of following or sticking to a plan, instruction, or set of rules.

Organizational Politics

Behavior that is not formally sanctioned by the organization and that is focused on maximizing our self-interest, often at the expense of the organization or other employees.

Coalition Building

is the process of forging alliances or partnerships among groups or individuals to achieve shared goals or address common issues.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of an organization.