Within the Context of Internal Selection, an Accurate Statement About

question 25

Multiple Choice

Within the context of internal selection, an accurate statement about the logic of prediction would be that ________.

• A) the logic of prediction can be applied more precisely for internal selection than for external selection
• B) the logic of prediction has identical application for internal and external selection
• C) the logic of prediction works better for external selection than for internal selection
• D) this concept does not apply to internal selection

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Definitions:

Long-Run Average Cost

The average cost per unit of output when all inputs, including capital, are variable, allowing for the adjustment of all factors in production to achieve the lowest cost.

Output

The quantity of goods or services produced in a given period of time.

Returns to Scale

The change in output resulting from a proportionate increase in all inputs (factors of production), where increasing, constant, and decreasing returns to scale can occur.

Long-Run Average Total Cost

The average cost per unit of output in the long term when all inputs can be varied by the firm and economies of scale have been reached.