An Earthquake Has Hit and Buildings Are Knocked Down; People

question 7

Multiple Choice

An earthquake has hit and buildings are knocked down; people are injured and crying for help. Looters have already started grabbing essential resources. Which of the following actions should the community take first?

• A) Send in ambulances to transport injured persons to medical facilities
• B) Send in media personnel to share the event and begin efforts to obtain donations for the injured
• C) Send in medical personnel to administer first aid and triage the injured
• D) Send in law officials to secure the area and ensure the safety of the victims

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Definitions:

Returns to Scale

The rate at which output increases in response to proportional increases in all inputs or resources, reflecting the production efficiency of a firm.

Long-Run Average Total Cost

The per unit cost of production in the long run, where all inputs, including capital, are variable.

Slope

The measure of the steepness, incline, or grade of a line, often calculated as the ratio of the vertical change to the horizontal change.

Diseconomies of Scale

Occur when a company or business grows so large that the costs per unit increase.