A University That Benefits from Lower Costs Per Enrolled Student

question 218

Multiple Choice

A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:

• A)economies of scale.
• B)diseconomies of scale.
• C)increasing opportunity costs.
• D)scale reduction.

---

Definitions:

Agent

An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.

Undisclosed Principal

A party in a contract whose identity is not revealed to the other party.

Agent Liability

The legal principle that holds agents accountable for their actions, especially when such actions cause harm or breach contractual obligations.

Contract

A legally binding agreement between two or more parties that is enforceable by law.