When an Increase in a Firm's Scale of Production Leads

question 122

Multiple Choice

When an increase in a firm's scale of production leads to higher average costs,the firm is experiencing

• A) economies of scale.
• B) constant returns to scale.
• C) decreasing returns to scale.
• D) diseconomies of scale.

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Definitions:

Null Hypothesis

A default statement that there is no effect or no difference, used as a starting point for statistical testing.

Main Effects

The individual impacts of multiple independent variables on a dependent variable in an experimental setting, rephrased from main effect.

Factorial Design

An experimental strategy where two or more factors are varied, allowing researchers to study their individual effects and interactions.

Null Hypothesis

A hypothesis that assumes no significant difference or effect within the context of the study.