Evidence from Empirical Studies of Long-Run Cost-Output Relationships Lends Support

question 5

Multiple Choice

Evidence from empirical studies of long-run cost-output relationships lends support to the:

• A) existence of a non-linear cubic total cost function
• B) hypothesis that marginal costs first decrease,then gradually increase over the normal operating range of the firm
• C) hypothesis that total costs increase quadratically over the ranges of output examined
• D) hypothesis that total costs increase linearly over some considerable range of output examined
• E) none of the above

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Definitions:

Outgroup Derogation

A psychological phenomenon where people tend to view and judge members of a group to which they do not belong less favorably than their own group (ingroup).

Self-Serving Attributions

A cognitive bias where individuals attribute their successes to internal or personal factors while attributing failures to external or situational factors.

Implicit Prejudice

Negative attitudes or affective reactions associated with an outgroup, for which the individual has little or no conscious awareness and which can be automatically activated in intergroup encounters.

Unconsciously

The process of thoughts, feelings, or behaviors occurring without conscious awareness or intention by the individual.