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:

Prejudice

Preconceived opinion or bias against an individual or group without sufficient knowledge, reason, or direct experience.

Attitude

A psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor.

False Consensus Effect

The tendency to overestimate how much other people share our beliefs, attitudes, and behaviors.

Opinions

Personal beliefs or judgments that are not necessarily based on fact or knowledge, reflecting individual perspectives.