Economies of Scale Occur When

question 2

Multiple Choice

Economies of scale occur when

• A)a firm's long-run average total costs fall as it increases the quantity of output it produces.
• B)the marginal product of labor is greater than the average product of labor.
• C)short-run marginal cost falls.
• D)the demand for a firm's output increases.

---

Definitions:

Significant Correlations

Statistical relationships between two variables indicating a strong association that is not likely due to chance alone.

Mediating Variables

Elements within a cause-and-effect relationship that explain the mechanism through which the independent variable affects the dependent variable.

Contingency Approaches

Management theories suggesting that the best way to handle any situation depends on the specific circumstances, rather than a one-size-fits-all solution.

Leader Behavior

The actions and conduct exhibited by individuals in leadership positions, influencing the group's activities and the achievement of its goals.