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CIMAPRA17-BA1-1 Exam - 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?

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Suggested Answer: B

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

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Kenny
3 months ago
Diminishing returns to scale? Nah, that’s not it!
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Misty
3 months ago
Wait, are we sure about C? Seems a bit off to me.
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Gregoria
4 months ago
A is a possibility, but I’m not sold on it.
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Tamra
4 months ago
I think B makes more sense, rising unit costs are a big factor.
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Erick
4 months ago
Definitely C, diminishing marginal returns is the key!
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Sheridan
4 months ago
I was leaning towards B as well, but now that I think about it, diminishing marginal returns seems more relevant for short-run cost increases.
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Penney
4 months ago
I recall a practice question that mentioned diseconomies of scale, but I don't think that's the right choice here since it usually applies to long-term scenarios.
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Maryanne
5 months ago
I'm not entirely sure, but I feel like rising unit costs could also be a factor. It seems like that would make sense in the short run.
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Keneth
5 months ago
I think the answer might be C, diminishing marginal returns, because I remember it relates to how adding more inputs can lead to less efficient production.
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Carman
5 months ago
D, diminishing returns to scale, makes sense to me as the reason average costs would rise in the short run. I'll mark that as my initial answer but double-check my reasoning.
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Omer
5 months ago
Diseconomies of scale, option A, also seem like a plausible explanation for rising average costs in the short run. I'll have to weigh the choices carefully.
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Pete
5 months ago
I'm pretty confident the answer is B. Rising unit costs as output increases would definitely lead to higher average costs in the short run.
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Clarinda
5 months ago
Hmm, I'm not totally sure about this one. I'll have to think it through carefully. Maybe I should review my notes on production theory before deciding.
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Alpha
5 months ago
I'm feeling pretty confident about this one. The question is asking about what causes average costs to rise in the short run, and the obvious answer is diminishing marginal returns, which is option C. The other choices like diseconomies of scale and diminishing returns to scale are more long-run concepts.
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Jarvis
5 months ago
Okay, I've got this. The key here is that in the short run, a firm is constrained by its fixed factors of production. As output increases, the firm will eventually experience diminishing marginal returns, leading to rising average costs. So the correct answer is C, diminishing marginal returns.
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Tina
5 months ago
Hmm, I'm a bit unsure about this one. I know average costs can rise in the short run due to diminishing returns, but I'm not totally clear on the differences between diminishing returns and diminishing returns to scale. I'll need to review those concepts before answering.
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Louann
5 months ago
This seems like a straightforward question about the factors that influence a firm's average costs in the short run. I'll need to think through the key concepts of economies of scale, diminishing returns, and how they impact average costs.
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Rory
5 months ago
I think the answer is C. Diminishing marginal returns would cause average costs to rise in the short run as the firm adds more variable inputs.
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Vanesa
5 months ago
Hmm, this is a tricky one. I'm going to carefully read through the question and options again to make sure I understand what's being asked.
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Lucina
5 months ago
This looks like a pretty straightforward file upload question. I'd start by checking if the uploaded file is valid using is_uploaded_file().
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Toshia
5 months ago
This seems like a straightforward incident handling question. I'll carefully read through the details and think about the different stages to determine which one Mike is currently in.
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Terina
5 months ago
I remember we discussed that assets and expenses usually have debit balances, but I'm unsure about how income tax liability fits in.
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Franchesca
10 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.
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Felicitas
8 months ago
Exactly, it's all about understanding the relationship between inputs and outputs in the short run.
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Francesco
9 months 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.
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Belen
9 months ago
Yes, that makes sense. As production increases, each additional unit becomes more expensive to produce.
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Ezekiel
9 months ago
Actually, I believe it's A) Diseconomies of scale. When a firm becomes too large, it can experience higher average costs.
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Terrilyn
9 months ago
I think C) Diminishing marginal returns is the correct answer.
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Kris
10 months ago
I think you're right, C) Diminishing marginal returns makes sense in this case.
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Maryanne
10 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!
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Felix
10 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.
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Julio
9 months ago
Exactly, that's why the average costs of a firm will rise in the short run.
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Louisa
9 months ago
It's all about the diminishing productivity of each additional unit of input.
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Gilbert
9 months ago
Yes, the law of diminishing returns explains the rise in average costs.
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Tammy
10 months ago
I think C) Diminishing marginal returns is the correct choice.
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Katheryn
10 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.
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Chandra
10 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.
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Roslyn
10 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.
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Latia
10 months ago
I'm leaning towards D) Diminishing returns to scale because it makes more sense to me.
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Shalon
11 months ago
I disagree, I believe it's C) Diminishing marginal returns.
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Merrilee
11 months ago
I think the answer is A) Diseconomies of scale.
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