The Figure Given Below Shows Three Short Run Average Total

question 73

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-If long-run costs are plotted on the vertical axis and quantity of output plotted on the horizontal axis, a positively sloped line implies _____.

• A)constant returns to scale
• B)economies of scale
• C)diseconomies of scale
• D)an increase in capital-labor ratio
• E)a decrease in cost-output ratio

Understand the concept of corporate social responsibility and its dimensions.

Identify the differences between legal compliance and voluntary commitments in business ethics.

Recognize the role of corporate governance in ethical corporate management.

Discriminate between different stakeholders and their roles within corporate social responsibility.

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Definitions:

Monthly Payments

Monthly Payments are regular payments made once a month, commonly associated with loans or leases.

Compounded Monthly

Interest computed each month on the original principal and the interest accumulated in the previous months.

Annuity

A fiscal instrument offering steady payment distributions, often serving as a revenue source for those in retirement.

Compounded Monthly

Interest calculation method where the accumulated interest is added to the principal at the end of each month, leading to "interest on interest".