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In the context of changing attitudes through persuasion, fear appeals are most effective when the audience believes that the risks are insignificant.
Decreasing Returns to Scale
A situation in which, as the scale of production increases, the output increases at a proportionally smaller rate, leading to increased average costs.
Long Run Average Cost Curve
A graphical representation showing the minimum average cost at which any output level can be produced in the long term when all inputs, including capital, are variable.
Increasing Returns to Scale
A situation in which a proportionate increase in all inputs leads to a greater proportional increase in output, indicating improved production efficiency.
Diminishing Marginal Returns
A principle stating that if one factor of production is increased while others remain constant, the overall returns will gradually decrease after a certain point.
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