Larger Firms Will Often Have Lower Minimum Per-Unit Costs Than

question 108

Multiple Choice

Larger firms will often have lower minimum per-unit costs than smaller firms because

• A) employee shirking is less of a problem.
• B) large-scale output allows greater specialization for both labor and machines in the production process.
• C) mass production techniques, with high setup and development costs, are appropriate only when a small output is planned.
• D) all of the above are correct.

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Definitions:

Serotonin

A neurotransmitter in the brain involved in the regulation of mood, appetite, and sleep, with a role in depression and anxiety disorders.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, regulating heart rate, blood pressure, and blood sugar levels.

Psychodynamic Theory

A psychological framework focusing on unconscious processes and childhood experiences affecting current behavior and feelings.

Unconscious Processes

Mental processes not directly accessible to consciousness but that influence judgments, feelings, or behavior.