Which Two Factors Appear to Be Associated with Greater Poverty

question 27

Multiple Choice

Which two factors appear to be associated with greater poverty in old age?

• A) health and marital status
• B) years of work and type of employer
• C) sex and ethnicity
• D) number of children and savings

Evaluate the financial implications of process further or sell as-is decisions.

Recognize the implication of variable and fixed costs in special orders and maximizing profit.

Identify relevant and irrelevant costs in decision-making scenarios.

Calculate the maximum external price acceptable in outsourcing scenarios.

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Definitions:

Diseconomies of Scale

A situation where a business grows so large that the costs per unit increase. It occurs when economies of scale no longer function for a firm.

Production Function

An equation or model that describes the relationship between inputs used in production and the output produced.

Diminishing Returns

The principle stating that if one factor of production is increased while others remain constant, the overall returns will incrementally decrease after a certain point, leading to reduced efficiency.

Decreasing Returns to Scale

A situation in which a proportional increase in all inputs results in a less-than-proportional increase in output.