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John likes to dine out frequently. However, he gets very upset if the service at the restaurant is not to his liking. He loses his temper with the servers and rebukes them. Although he regrets his behavior later, he ends up repeating his behavior. His fellow diners usually avoid going out with him again. John's lack of control on his emotions suggests that:
Constant Returns to Scale
A situation in which increasing the amount of inputs in production results in a proportional increase in output.
Long-run Total Costs
The total costs incurred by a firm when all factors of production are variable, emphasizing the period where no costs are fixed.
Average-fixed-cost Curve
A curve that shows the relationship between the average fixed cost of producing a good and the quantity of the good produced, typically declining as production increases.
Marginal Product
The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.
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