Why Are Diversionary Incentives Less Common Than Once Thought

question 66

Multiple Choice

Why are diversionary incentives less common than once thought?

• A)The overall domestic costs of a war can be extremely high.
• B)Political leaders are too cynical to think that the public will believe them.
• C)There are too many benefits to starting a war.
• D)Other states are unlikely to become preoccupied with a war.

Understand the concept and implications of minimum efficient scale.

Identify the point at which diseconomies of scale set in for a firm.

Distinguish between economies and diseconomies of scale.

Interpret the effects of input increases on average and marginal costs.

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