When a Firm Is Experiencing Diseconomies of Scale

question 49

Multiple Choice

When a firm is experiencing diseconomies of scale,

• A)it should increase the amount of labor it hires.
• B)it should lower its price to the competitive level.
• C)its average total costs will decline if it reduces its scale of operations.
• D)it should increase the size of its plant to decrease its average total costs.

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Definitions:

Face-threatening Acts

Actions or statements that challenge the social standing or dignity of another person within an interaction.

Corrective Facework

The communication strategies employed to repair one's image or persona in the eyes of others after a perceived or actual loss of face.

Positive Face

The desire to be liked, appreciated, and valued within one's social group.

Politeness

The practice of showing respect and consideration for others through courteous behavior and language.