As Output Increases,a Typical Firm's Unit Costs

question 99

Multiple Choice

As output increases,a typical firm's unit costs

• A) decrease because the firm buys its inputs in large quantities
• B) increase because the supply of inputs increases
• C) remain constant
• D) increase due to the increasing scarcity of resources
• E) decrease as firms take advantage of diseconomies of scale.

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Definitions:

Value Networking

A business analysis practice that involves mapping and analyzing the interactions between an organization's resources, capabilities, and market opportunities to create value.

Customer Insights

Critical information gathered about consumers that helps businesses understand their needs, preferences, and behaviors.

Marketing Mix

A set of controllable, tactical marketing tools—product, price, place, and promotion—that a company uses to produce a desired response from its target market.

Discovering New

The process of identifying previously unrecognized opportunities or insights.