When Long-Run Average Costs Decline as Output Increases, the Firm

question 98

Multiple Choice

When long-run average costs decline as output increases, the firm is experiencing

• A) negative returns to scale.
• B) diseconomies of scale.
• C) constant returns to scale.
• D) economies of scale.

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Definitions:

Counterproductive

Activities or behaviors that hinder or go against the achievement of one's goals or objectives.

Self-efficacy

A person's confidence in their ability to perform actions required to achieve certain outcomes.

Self-regulate

The ability to manage one's own emotions, thoughts, and behaviors in different situations effectively.

"CORFing"

An acronym for "Cutting Off Reflected Failure," a social behavior where individuals distance themselves from those who have failed to maintain their self-esteem.