Which of the Following Would Increase a Firm's Average Total

question 3

Multiple Choice

Which of the following would increase a firm's average total costs?

• A) economies of scale
• B) an increase in input prices
• C) an improvement in technology
• D) an increase in demand for the firm's product

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Definitions:

Knowledge of the Business

Knowledge of the Business involves understanding the internal and external factors that affect a company's operations, including its industry, market, and organizational structure.

Path-goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates.

Expectancy Theory

A theory of motivation that proposes an individual's behavior is determined by their expected outcomes and the value they place on those outcomes.

Self-confidence

The belief in one's own abilities, skills, and capacity to succeed or accomplish a task.