Which of the Following Is FALSE

question 94

Multiple Choice

Which of the following is FALSE?

• A) Long-run average variable costs equal long-run average total costs.
• B) Fixed costs increase in the long run.
• C) As a firm produces more output, eventually it experiences diseconomies of scale.
• D) In the long run, both the amount of capital and labor used by the firm can be changed.
• E) In the long run, the firm has no fixed inputs.

Understand the relevance of servant and transformational leadership theories in organizational contexts.

Understand the basic principles of path-goal theory and its leadership styles.

Distinguish between people-oriented and task-oriented leadership styles.

Identify the behavioral perspective of leadership and its two dimensions.

---

Definitions:

Opportunity Cost

The cost associated with the best foregone choice because of a decision.

Machinery

A category of physical hardware used in the production process, including tools, engines, and devices that perform various tasks.

Sweaters

Knitted garments intended to cover the torso and arms, providing warmth and fashioned from materials like wool, cotton, or synthetic fibers.

Comparative Advantage

The ability of a country, company, or individual to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade and production.