Which of the Following Explains Why Long-Run Average Total Cost

question 114

Multiple Choice

Which of the following explains why long-run average total cost at first decreases as output increases?

• A)diseconomies of scale
• B)less efficient use of lumpy inputs
• C)fixed costs become spread out over more units of output
• D)gains from specialization of inputs
• E)marginal costs rise at a slower rate than average costs in the short run

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Definitions:

External Justification

Refers to reasons or explanations provided for a person's behavior that lie outside the individual, often used to explain actions that contradict one's own beliefs or values.

Cognitive Dissonance

The psychological unease felt by someone who simultaneously maintains two or more conflicting beliefs, ideas, or values.

Theory of Reasoned Action

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes toward the behavior and subjective norms.

Behavioral Control

involves the regulation of one's behavior, including the ability to start, maintain, or cease actions in accordance with one's goals and societal norms.