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A new patient in an alcoholism rehabilitation program says, "I'm just a social drinker. I usually have a drink or two at brunch, a few cocktails in the afternoon, wine at dinner, and a few drinks in the evening." Which response by the nurse will help the patient view the drinking more honestly?
Average Costs
The total costs (fixed and variable) divided by the total output, indicating the cost per unit of output produced.
Decreasing Returns to Scale
A situation in which, when the scale of production is increased, the output increases at a proportionally lower rate.
Minimum Efficient Scale
The smallest level of production a company can achieve while still taking full advantage of economies of scale in terms of costs per unit.
Long-Run Average Cost Curve
A graphical representation showing the lowest average cost of producing any output level when all inputs can be varied.
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