Select the Strongest Relationship

question 7

Multiple Choice

Select the strongest relationship.

• A)-.59
• B)-.47
• C)+.28
• D)+.57

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as an operation scales up, typically due to inefficiencies or increased complexities.

Long-Run

The long-run refers to a period in economics where all factors of production and costs are variable, allowing all inputs to be adjusted.

Short-Run

A period in economics during which at least one factor of production is fixed, focusing on immediate effects and adjustments.

Spreading Effect

A phenomenon in economics where an initial investment leads to additional benefits that spread beyond the immediate context, often stimulating further economic activity.