If Diseconomies of Scale Are Present

question 31

Multiple Choice

If diseconomies of scale are present,

• A)average total cost is decreasing.
• B)the long-run average cost curve has a negative slope.
• C)economies of scale are also present.
• D)the long-run average cost curve has a positive slope.
• E)the average total cost shifts downward.

Understand the concept of net working capital and its significance to a firm’s financial health.

Understand the calculation and management of free cash flow.

Recognize the potential biases in management-prepared financial reports and their implications.

Learn about the mechanisms of cash sources and uses and their impact on a firm's liquidity.

---

Definitions:

Addiction

A chronic, relapsing disorder characterized by compulsive drug seeking, continued use despite harmful consequences, and long-lasting changes in the brain.

Heredity

The biological process through which genetic characteristics are transmitted from one generation to the next.

Antisocial Personality Disorder (APD)

A personality disorder characterized by a lifelong pattern of irresponsible, antisocial behavior such as law-breaking, violence, and other impulsive, reckless acts.

Neuropsychological Tests

Standardized tasks or assessments used to measure brain function and cognitive performance, often used to diagnose cognitive deficits.