If a Firm Enlarges Its Factory Size and Realizes Higher

question 52

Multiple Choice

If a firm enlarges its factory size and realizes higher average costs of production then

• A) it has experienced economies of scale.
• B) it has experienced diseconomies of scale.
• C) it has experienced constant returns to scale.
• D) the long-run average cost curve slopes downward.
• E) the long-run average cost curve shifts upward.

---

Definitions:

Ethical Behavior

Refers to actions that are consistent with what society, individuals, and businesses consider to be right or moral.

Conflict of Interest

A situation in which a person's personal interests could potentially influence their professional judgment or responsibilities.

Conflict of Interest

A situation in which an individual's personal interest might interfere with their professional obligations or duties.

Preconventional Behavior

A stage in moral development where an individual's ethical principles are guided mainly by external consequences and rewards.