When the Firm Increases Output and the Costs Rise Disproportionately

question 22

Multiple Choice

When the firm increases output and the costs rise disproportionately faster, then the long-run average cost curve is ________ and the firm is experiencing ________.

• A) horizontal; constant returns to scale
• B) downward sloping; constant returns to scale
• C) upward sloping; diseconomies of scale
• D) downward sloping; economies of scale

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Definitions:

Appraisal Politics

The influence of personal agendas, biases, and power dynamics within the performance appraisal process, often affecting the fairness and accuracy of evaluations.

Performance Appraisal

The process by which an employee's job performance is evaluated, typically annually, by their supervisor, encompassing feedback on achievements and areas for improvement.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.

Rating Errors

Mistakes or biases that occur when evaluating the performance or abilities of individuals, which can affect the accuracy and fairness of assessments.