Falling Interest Rates Are an Example of What Kind of External

question 89

Multiple Choice

Falling interest rates are an example of what kind of external force that causes a company to need to make an organizational change?

• A)marketplace competition forces
• B)government laws and regulations
• C)labor market forces
• D)economic forces

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Definitions:

Average Variable Cost

is the cost that varies with the level of output, calculated by dividing the total variable costs by the quantity of output produced.

Diminishing Returns

A rule that asserts when one input in the production process is augmented without changes to the others, there will ultimately be a decline in output after reaching a specific level.

Average Fixed Cost

The cost per unit that remains constant regardless of the level of production or output.

Output

The total amount of goods or services produced by a company or economy.