If the Minimum Efficient Scale in Woodstove Production Is 100

question 118

Multiple Choice

If the minimum efficient scale in woodstove production is 100, 000 units per year,

• A)the average cost of producing 50, 000 stoves is greater than the average cost of producing 100, 000
• B)the average cost of producing 50, 000 stoves is equal to the average cost of producing 100, 000
• C)the total cost of producing 50, 000 stoves is greater than the total cost of producing 100, 000
• D)the firm should not produce more than 100, 000 woodstoves
• E)MC exceeds AC at 100, 000 stoves

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Definitions:

External Attributions

The process of attributing the cause of behaviors or events to factors outside the individual, such as situational or environmental forces.

Stable Attributions

The perception that an individual's behavior is due to fixed, unchanging factors.

External Attribution

The process of attributing the cause of one's own or another's behavior to external factors or situations.

Internal Factors

The influences that originate within an individual or entity, affecting its behavior, decisions, and performance.