The Table Given Below Shows the Average Total Cost of Production

question 98

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-Diseconomies of scale:

• A)occur only in the short run.
• B)occur when at least one resource is fixed and unit costs decrease as the quantity of production increases.
• C)occur when at least one resource is fixed and unit costs increase as the quantity of production increases.
• D)are represented by the upward-sloping portion of the short run average total cost curve.
• E)occur when all resources are variable and unit costs increase as the quantity of production increases.

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Definitions:

Unwarranted Assumption

A belief taken for granted without sufficient evidence or basis, leading to potential misunderstandings or erroneous conclusions.

Deductive Reasoning

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Creative Problem-Solving

An approach to finding innovative solutions to complex problems through creativity and non-standard strategies.

Persistence

The quality of continuing steadily despite problems or difficulties.