For Small Quantities of Output,average Variable Cost Decreases as Output

question 162

Multiple Choice

For small quantities of output,average variable cost decreases as output increases due to

• A) a reduction in the number of workers.
• B) diminishing return.
• C) labor specialization increases worker productivity.
• D) More information is needed to determine the answer.

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Definitions:

Minimize Or Shed

Strategies employed to reduce, remove, or delegate non-core business activities or assets to focus on primary objectives.

Opportunity-Seeking Processes

The methodologies or approaches used by individuals or organizations to identify and exploit potential opportunities for growth or improvement.

Ownership Mind-Set

A way of thinking characterized by taking responsibility, showing initiative, and actively managing one's assets or area of control.

Entrepreneurial Strategic Methods

Approaches and techniques employed by entrepreneurs to identify, evaluate, and exploit opportunities for business growth.