Economies of Scale Occur When the Per-Unit Cost of Production

question 40

Multiple Choice

Economies of scale occur when the per-unit cost of production falls as a firm's output increases.How is this commonly achieved?

• A) when the company suffers from a dip in the demand for its products or services
• B) when the company has certain fixed costs that do not change with the rise or fall in units produced
• C) when the company has a predetermined order of tasks to be completed
• D) when the managers of a company have an autocratic approach to leadership

Critique the organizational principle of impersonality within bureaucracies in regard to efficiency.

Explore the influence of organizations on personal identity through the lens of symbolic interaction theory.

Understand the general definition and characteristics of phobias and their irrational nature.

Identify the tools and tests (e.g., projective tests) used by psychologists to assess patients' mental states.

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Definitions:

Federal Income Tax

Federal income tax is the tax levied by the national government on individuals and organizations' annual earnings.

Taxpayers

Individuals or entities obligated to pay taxes to governmental authorities.

Income Tax

A tax imposed by the government directly on individuals' or organizations' income.

Proportional Tax

At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.