Economies of Scale Exist Whenever

question 105

Multiple Choice

Economies of scale exist whenever:

• A) average total costs decline as output increases.
• B) average total costs increase as output increases.
• C) average total costs are stationary as output increases.
• D) average total costs increase as output increases and average total costs are stationary as output increases.

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Definitions:

Structuralism

A method of interpretation and analysis of aspects of human cognition, behavior, culture, and experience which focuses on relationships of contrast between elements in a conceptual system.

Behaviorism

A theory of learning which states all behaviors are acquired through conditioning processes influenced by the environment.

Gestalt Psychology

A psychological approach that emphasizes the whole of anything is greater than its parts and studies how people interpret and organize information.

Naturalistic Observation Method

A research strategy where behaviors are observed and recorded in their natural environment without manipulation or interference.