Economies of Scale Can Occur as a Result of Which

question 64

Multiple Choice

Economies of scale can occur as a result of which of the following?

• A) increasing marginal returns as the firm increases its size
• B) lower fixed cost as the firm increases its size
• C) management difficulties as the firm increases its size
• D) greater specialization of labor and capital as the firm increases its size
• E) increased total cost when the firm increases its size

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Definitions:

Compensation

A defense mechanism characterized by efforts to overcome imagined or real inferiorities by developing one’s abilities.

Imagined Or Real Inferiorities

Perceptions or beliefs of being less capable, worthy, or valuable compared to others, regardless of their factual basis.

Adler

Refers to Alfred Adler, an Austrian medical doctor and psychotherapist, known for his contributions to psychology with the theory of individual psychology.

Behaviorists

Psychologists who study and theorize about human and animal behavior through observable actions, often dismissing internal processes.