The U-shaped average total cost curve is
A) a result of firms' wanting to find the output level where cost is at its minimum.
B) unrealistic because average total cost always increases as output increases.
C) the result of average fixed cost falling and decreasing marginal returns as output increases.
D) a result of constant marginal returns.
E) a result of increasing marginal returns.
C
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Orders can lose accuracy:
a. if they are too complicated. b. as they are transmitted within the organization. c. in organizations where decision-making is decentralized. d. unless they are given to the right recipient.
When a firm uses technological improvements to increase output from the same amount of inputs, the result is
A) a new production function. B) losses. C) guaranteed profits. D) diseconomies of scale.