When There Are Diseconomies of Scale in Production

question 125

Multiple Choice

When there are diseconomies of scale in production:

• A)long-run average total cost declines as output expands.
• B)long-run average total cost increases as output expands.
• C)average fixed cost increases as output expands.
• D)marginal cost decreases as output expands.
• E)the marginal product of an input diminishes with increased utilization.

---

Definitions:

Priming

A technique in psychology used to influence a participant's response to a stimulus by exposing them to a previous stimulus.

Cognitive Facilitation

The improvement in performance of one cognitive task due to exercises or activities that stimulate cognition.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making.

Prime Numbers

Natural numbers greater than 1 that have no positive divisors other than 1 and themselves, crucial in number theory.