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:

Auditory Cortex

The region of the brain that processes auditory information, crucial for understanding sounds and language.

Temporal Lobe

A region of the brain located beneath the lateral fissure on both cerebral hemispheres, involved in processing auditory information and encoding memory.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Occipital Lobe

The rearmost lobe in each cerebral hemisphere of the brain, primarily responsible for processing visual information.