If a Firm's Average Total Costs Decrease as It Increases

question 11

Multiple Choice

If a firm's average total costs decrease as it increases its scale of production,the firm is experiencing

• A) economies of scale.
• B) diseconomies of scale.
• C) increasing returns from specialization.
• D) diminishing marginal product.
• E) constant returns to scale.

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Definitions:

Low-Performing

Referring to an individual or entity that fails to meet expected or standard levels of productivity or achievement.

Friendly Competitive

A situation in which competitors interact in a positive and supportive manner while still striving to win.

Supervisory Skills

The set of abilities and competencies that a person needs in order to oversee, guide, and motivate employees effectively.

Acknowledgement Skills

The capacity to recognize and validate the feelings, thoughts, or contributions of others.