Darrell Owns a Furniture Store

question 89

Multiple Choice

Darrell owns a furniture store. If he moves into a larger store but finds that his average costs have increased in the long run, we know that Darrell is experiencing:

• A) increasing marginal product.
• B) diminishing marginal product.
• C) diseconomies of scale.
• D) constant returns to scale.
• E) economies of scale.

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Definitions:

ReBELLion

A forceful or violent effort to change an existing state of affairs, often featuring a dramatic refusal to conform or comply.

Promotional Mix

A combination of marketing tools including advertising, sales promotion, public relations, personal selling, and direct marketing used to reach the target audience and fulfill the organization's overall goals.

Sales Promotion

Short-term incentives or activities aimed at encouraging the purchase or sale of a product or service.

Direct Marketing

A form of advertising where businesses communicate directly with customers through various media.