Which Economic Concept Explains Why a Large Drugstore Chain Can

question 80

Multiple Choice

Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville Pharmacy, an individually owned drugstore?

• A)increasing marginal returns
• B)diminishing marginal returns
• C)economies of scale
• D)diseconomies of scale
• E)constant returns to scale

Understand the role of data analytics in enhancing the measurement of employee performance.

Identify discrimination issues within performance management and strategies to protect the organization against related lawsuits.

Understand the concept and importance of calibration meetings in ensuring appraisal accuracy and accountability.

Distinguish between different scales used in performance appraisals, such as BOS and BARS.

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Definitions:

Aging Analysis

A method used to estimate the collectability of accounts receivable by categorizing them according to their age, usually in 30-day increments.

Historical Relationship

Refers to the analysis of past interactions or correlations between variables to predict future trends or behaviors.

Bad Debt Expense

This refers to the amount of receivables a company does not expect to collect and hence records as an expense on its income statement.

Outstanding Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered but not yet paid for.