A Firm That Has Economies of Scale

question 54

Multiple Choice

A firm that has economies of scale:

• A)at low output and diseconomies of scale at high output is a natural monopoly.
• B)over the entire range of output demanded is a natural monopoly.
• C)at any particular level of output is a natural monopoly.
• D)has a continually rising long-run average cost curve.

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Definitions:

Voluntary Turnover

Occurs when employees choose to leave a company for personal reasons, such as a new job opportunity or relocation.

Downsizing

The process of reducing the size of a company's workforce to cut costs, which can involve layoffs, selling parts of the business, or outsourcing.

Outsourcing

The practice of hiring third parties to perform services or create goods that were previously done in-house, often to cut costs or improve efficiency.

Core Business

The primary area of a company's operation or the main source of its profitability, representing its fundamental mission or the key focus of its commercial activity.