If a Firm Increases Its Output and Its Average Cost

question 164

Multiple Choice

If a firm increases its output and its average cost decreases,the firm is experiencing which of the following?

• A) increasing marginal returns
• B) diseconomies of scale
• C) economies of scale
• D) random luck
• E) decreasing cost of marginal returns

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Definitions:

Meditation

A practice of mindfulness or concentration, often used for relaxation, stress reduction, and spiritual growth.

DBT

Dialectical Behavior Therapy, a form of psychotherapy that combines strategies from cognitive-behavioral therapy with concepts of mindfulness, distress tolerance, emotion regulation, and interpersonal effectiveness.

Wise Mind

A concept from Dialectical Behavior Therapy that represents a balance between emotional and rational responses, leading to wise decisions.

Muscle Relaxation

Muscle relaxation is a technique that involves systematic tensing and relaxing of muscle groups to reduce physical stress and enhance relaxation.