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

Identify and analyze the various types of collaborations and their impact on supply chain efficiency.

Understand the process model for forming and sustaining successful supply chain relationships.

Grasp the concept of core competency and its impact on strategic outsourcing decisions.

Realize the importance of information technology in bridging the IT gap within supply chain collaborations.

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Definitions:

Signal-detection

a psychological theory that aims to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information.

Sensory Input

Information received through the senses, which is then processed by the brain.

Perception

The process of organizing, identifying, and interpreting sensory information in order to represent and understand the environment.

Signal-detection Theory

A psychological theory that explains how we discern between information-bearing patterns and random noise in the environment.