As a Firm Gets Larger and Larger,it Finds That It

question 98

Multiple Choice

As a firm gets larger and larger,it finds that it is able to charge a lower price and yet continue to make profit.This firm most likely has exploited

• A) economies of scale.
• B) diseconomies of scale.
• C) constant returns to scale.
• D) labour by making them work with fewer machines.
• E) the consumers by simply increasing its advertising budget to increase sales.

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Definitions:

Niche Construction

The process by which organisms actively modify their environment or create new environments, affecting their own and other species' evolution.

Organisms

Living entities, such as plants, animals, fungi, and microorganisms, that are capable of reproducing and responding to environmental stimuli.

Alter

To change or modify something.

Environments

The environment or settings where a person, animal, or plant exists or functions.