All of the Following,except One,would Result in Lower Average Cost

question 111

Multiple Choice

All of the following,except one,would result in lower average cost.Which is the exception?

• A)An increase in output if the firm was operating below its capacity output.
• B)Building a larger plant if the firm was experiencing increasing returns to scale.
• C)Down-sizing the scale of operations if the firm was experiencing diseconomies of scale.
• D)Down-sizing the scale of operations if the firm was experiencing constant returns to scale.

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Definitions:

Basin Bath

A method of bathing that involves using a basin filled with water and soap, commonly used for bedridden patients.

Nail Care

Practices and procedures performed to maintain the health and aesthetics of fingernails and toenails.

Fingernails

Hardened keratin plates covering the dorsal aspect of the terminal phalanges of fingers, playing roles in protection, sensation, and manipulation.

Orange Stick

A tool made from orange wood used in manicures and pedicures to push back cuticles and clean nails.