If a Firm Decreases Its Plant Size and Finds That

question 136

Multiple Choice

If a firm decreases its plant size and finds that its long-run average costs have decreased, then

• A)its labour is more productive in a smaller plant.
• B)its diseconomies of scale are less.
• C)the firm should reduce its plant size even more.
• D)the firm is now profitable.

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Definitions:

Intellectually Enriched

Describes an environment or condition that stimulates cognitive growth and development through exposure to diverse and challenging materials and experiences.

Intensity

The magnitude or strength of a phenomenon, such as sound, light, or physical force, often described in terms of levels or degrees.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Acute Pain

A type of pain that is sharp and severe but lasts for a relatively short period, often signaling tissue damage or an injury.