Diseconomies of Scale Occur When

question 201

Multiple Choice

Diseconomies of scale occur when

• A) long-run average costs rise as a firm increases its output.
• B) long-run average costs fall as a firm expands its plant size.
• C) short-run average costs rise as a firm expands its plant size.
• D) long-run labour costs rise as a firm increases its output.

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Definitions:

Ethical Issue

A situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Human Subjects

Individuals who participate in research studies, whose rights and welfare are protected by ethical guidelines.

Psychological Damage

Emotional or mental injury caused by experiences of stress, trauma, or abuse that adversely affects an individual’s mental health and well-being.

Construct Validity

The degree to which a test measures what it claims, or purports, to be measuring. It is the degree to which the dependent measure assesses what it intends to assess or the manipulation of the independent variable manipulates what it intends to manipulate.