If Production Is Subject to Economies of Scale

question 81

Multiple Choice

If production is subject to economies of scale,

• A)countries can gain from trade if each nation specializes
• B)one country will develop an absolute advantage in the production of all goods
• C)higher output levels result in higher average production costs
• D)one country will develop a comparative advantage in the production of all goods
• E)countries cannot gain from trade

Recognize the international jurisdictional issues raised by the internet and online transactions.

Comprehend the principles of jurisdiction, including the conditions under which courts can exercise jurisdiction over parties.

Understand the implications of jurisdiction for corporations operating in multiple states or countries.

Identify the factors influencing the choice of litigating in federal versus state court when concurrent jurisdiction exists.

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Definitions:

Schedule Of Cash Collections

A detailed plan that shows when a company expects to receive cash from accounts receivable or other revenue sources.

Direct Labor Budget

A direct labor budget is a financial plan that estimates the total cost of direct labor required to meet the production needs of a business.

Direct Labor-hours

The total hours worked directly on the production of goods.

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.