Independence Day Deal! Unlock 25% OFF Today – Limited-Time Offer - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location PL
Mob_nav_barsMENU

CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 74 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 74
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

Which of the following influences explains why the average costs of a firm will rise in the short run?

Show Suggested Answer Hide Answer
Suggested Answer: B

by Donette at Aug 29, 2023, 10:42 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Franchesca
2 months ago
I'm pretty sure C) is the correct answer. As the firm produces more, the additional input required to produce each extra unit leads to higher average costs. Basic economics, really.
upvoted 0 times
Felicitas
5 days ago
Exactly, it's all about understanding the relationship between inputs and outputs in the short run.
upvoted 0 times
...
Francesco
10 days ago
I'm not sure about this one, but D) Diminishing returns to scale could also be a factor in the rise of average costs.
upvoted 0 times
...
Belen
12 days ago
Yes, that makes sense. As production increases, each additional unit becomes more expensive to produce.
upvoted 0 times
...
Ezekiel
17 days ago
Actually, I believe it's A) Diseconomies of scale. When a firm becomes too large, it can experience higher average costs.
upvoted 0 times
...
Terrilyn
1 months ago
I think C) Diminishing marginal returns is the correct answer.
upvoted 0 times
...
Kris
1 months ago
I think you're right, C) Diminishing marginal returns makes sense in this case.
upvoted 0 times
...
...
Maryanne
2 months ago
Ha! Diseconomies of scale and diminishing returns to scale sound like they're related, but C) Diminishing marginal returns is the key driver of rising average costs in the short run. Gotta love those econ terms!
upvoted 0 times
...
Felix
2 months ago
I was a bit confused between B) Rising unit costs and C) Diminishing marginal returns, but I agree that C) is the better choice. The law of diminishing returns definitely explains the rise in average costs.
upvoted 0 times
Julio
15 days ago
Exactly, that's why the average costs of a firm will rise in the short run.
upvoted 0 times
...
Louisa
18 days ago
It's all about the diminishing productivity of each additional unit of input.
upvoted 0 times
...
Gilbert
20 days ago
Yes, the law of diminishing returns explains the rise in average costs.
upvoted 0 times
...
Tammy
2 months ago
I think C) Diminishing marginal returns is the correct choice.
upvoted 0 times
...
...
Katheryn
2 months ago
Hmm, I think C) Diminishing marginal returns is the correct answer. As the firm produces more, it's natural for the average costs to rise in the short run due to this phenomenon.
upvoted 0 times
Chandra
1 months ago
I think A) Diseconomies of scale could also be a factor. When a firm grows too large, it may become inefficient and experience higher average costs.
upvoted 0 times
...
Roslyn
2 months ago
I agree, C) Diminishing marginal returns makes sense. It means that each additional unit of input will result in smaller increases in output.
upvoted 0 times
...
...
Latia
2 months ago
I'm leaning towards D) Diminishing returns to scale because it makes more sense to me.
upvoted 0 times
...
Shalon
2 months ago
I disagree, I believe it's C) Diminishing marginal returns.
upvoted 0 times
...
Merrilee
3 months ago
I think the answer is A) Diseconomies of scale.
upvoted 0 times
...

Save Cancel
az-700  pass4success  az-104  200-301  200-201  cissp  350-401  350-201  350-501  350-601  350-801  350-901  az-720  az-305  pl-300  

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77