Which of the Following Explains Why Long-Run Average Cost at First

question 414

Multiple Choice

Which of the following explains why long-run average cost at first decreases as output increases?

• A)diseconomies of scale
• B)less-efficient use of inputs
• C)fixed costs becoming spread out over more units of output
• D)gains from specialization of inputs

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Definitions:

Coercive Power

Coercive Power is the ability to control others through threats or punishment, often used in a negative context to compel obedience.

Negative Reinforcement

Negative Reinforcement is a behavioral concept where removing an unwanted stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Legitimate Power

Legitimate Power is the authority that a person or organization has that is viewed as rightfully held, often given by a higher authority or institution.

Reward Power

The capability of influencing others’ behavior by offering them something desirable as a means of motivation or incentive.