The Effect of Diminishing Marginal Returns Outweighing the Effect of Spreading

question 147

Multiple Choice

The effect of diminishing marginal returns outweighing the effect of spreading out the fixed costs is illustrated by the ________ average cost curve ________.

• A) long-run; decreasing
• B) long-run; increasing
• C) short-run; decreasing
• D) short-run; increasing

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Definitions:

Hospital System

An organized network of hospitals, clinics, and health care facilities that provides a range of medical services to patients.

Line Activities

Direct activities that contribute to the production or delivery of a company's products or services, typically involving roles and tasks core to the business operations.

Staff Activities

Tasks or duties performed by employees as part of their employment.

Human Resources Director

A senior executive responsible for the management and development of a company's or organization’s workforce.