The Reduction in Average Cost Resulting from an Increase in the Volume

question 18

Multiple Choice

The reduction in average cost resulting from an increase in the volume of a good or services produced is called:

• A)information cost
• B)transaction cost
• C)diminishing returns
• D)economies of scale

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the impact of situational factors in explaining someone else's behavior.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts or feelings onto someone else.

Consensus Cue

A signal or piece of information indicating that a group is reaching or has reached general agreement on a particular issue.

Distinctiveness

The quality of being different or unique, distinguishing an individual, group, or object from others in a specific context or among comparable entities.