If a Firm Increases Its Output and Its Average Cost

question 164

Multiple Choice

If a firm increases its output and its average cost decreases,the firm is experiencing which of the following?

• A) increasing marginal returns
• B) diseconomies of scale
• C) economies of scale
• D) random luck
• E) decreasing cost of marginal returns

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Definitions:

Therapeutic Group

A form of therapy where individuals gather in a group setting to discuss and work through personal issues with the guidance of a trained therapist.

Leadership Method

Approaches and strategies employed by leaders to guide, influence, and manage groups or organizations towards achieving goals.

Developmental Process

Refers to the sequence of growth or evolution of a system, organism, or group over time.

Kivlighan's Study

A specific research study or series of studies conducted by psychologist D. Martin Kivlighan, focusing on aspects of group dynamics, therapy, or related psychological fields.