When There Are Diseconomies of Scale in Production

question 71

Multiple Choice

When there are diseconomies of scale in production:

• A) long-run average total cost declines as output expands.
• B) long-run average total cost increases as output expands.
• C) marginal cost decreases as output expands.
• D) none of the above

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Definitions:

Expertise

Specialized skill or knowledge in a particular area, acquired through training, study, or practice, leading to a high level of competence or performance.

Psychology Laboratory

A controlled environment where scientific research, experiments, and observations in psychology are conducted.

Wundt

A psychologist known as the father of experimental psychology, he established the first laboratory dedicated to psychological research in Leipzig, Germany.

Unconscious Processes

Mental activities below the level of conscious awareness that influence thoughts, feelings, and behaviors, a key concept in psychoanalytic theory.