If a Firm's Long-Run Average Total Curve Shows That It

question 81

Multiple Choice

If a firm's long-run average total curve shows that it can produce 5,000 DVDs at an average cost of $2.00 and 15,000 DVDs at an average cost of $1.50, this is evidence of

• A)diminishing returns.
• B)economies of scale.
• C)diseconomies of scale.
• D)the law of supply.

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Definitions:

Reputation

The overall quality or character as seen or judged by people in general, often influenced by their perceptions of an individual's or organization's actions.

Perceptual Identity

The way individuals see themselves and how this self-perception affects their interactions and communication with others.

Demonstrated Behavior

Observable actions or reactions of an individual or group that are exhibited in response to a situation or stimulus.

Relationship Changes

Alterations in the dynamics or nature of interactions between individuals or groups.