According to Bard and Sangrey (1979), Which of the Following

question 8

Multiple Choice

According to Bard and Sangrey (1979) , which of the following is not a stage of crisis reaction?

• A) Recoil stage.
• B) Impact stage.
• C) Reorganization stage.
• D) Traumatic stage.

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Definitions:

Average Total Cost

A firm’s total cost divided by output (the quantity of product produced); equal to average fixed cost plus average variable cost.

Economies of Scale

Cost advantages that a business obtains due to expansion, leading to a reduction in the average cost per unit through increased production.

Diseconomies of Scale

The situation in which a business grows to a point where the costs per unit increase, opposed to saving costs, often due to managerial inefficiencies or complexity.

Constant Returns to Scale

A situation in which increasing the amount of all inputs used in production by a certain factor results in output increasing by the same factor.