Internal Economies of Scale Arise When the Cost Per Unit

question 18

Multiple Choice

Internal economies of scale arise when the cost per unit

• A) falls as the industry grows larger.
• B) remains constant over a broad range of output.
• C) rises as the industry grows larger.
• D) falls as the average firm grows larger.
• E) rises as the average firm grows larger.

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Definitions:

Tenancy in Partnership

Tenancy in Partnership describes a form of ownership where partners possess an undivided interest in property owned by the partnership for the purpose of the partnership's business.

Tenancy in Common

A form of ownership where two or more individuals own property together, each holding a distinct, undivided interest.

Joint Tenancy

A form of property ownership by two or more parties who have equal rights to the entire property, including the right of survivorship, so when one owner dies, their share automatically passes to the surviving owners.

Right of Survivorship

A legal principle in real estate that allows property to automatically pass to the surviving owner(s) upon the death of another owner.