If a Company Triples Its Output and Its Average Cost

question 139

Multiple Choice

If a company triples its output and its average cost decreases,then the firm is definitely experiencing

• A) diseconomies of scale.
• B) decreasing marginal returns.
• C) increasing marginal returns.
• D) economies of scale.
• E) Both answers C and D are correct.

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Definitions:

Co-leadership

A leadership structure where two or more individuals share the role of leading an organization, team, or project.

Implicit Leadership Theory

The concept suggesting that people have ingrained beliefs and assumptions about the attributes and behaviors that make an effective leader.

Sensitivity

The quality of being responsive or susceptible to changes or the feelings of others; in a business context, it can relate to understanding market needs or team dynamics.

Tyranny

A form of government where power is held by a single ruler who often exercises authority in a cruel or oppressive manner.