External Economies of Scale Will ________ Average Cost When Output

question 7

Multiple Choice

External economies of scale will ________ average cost when output is ________ by ________.

• A) reduce; increased; the industry
• B) reduce; increased; a firm
• C) increase; increased; a firm
• D) increase; increased; the industry
• E) reduce; reduce; the industry

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Definitions:

Validity

The degree to which a test, tool, or study accurately measures or reflects what it is intended to measure.

Applicability

The relevance or suitability of something for a particular purpose or in a specific context.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Independent Variable

In an experiment, it is the variable that is manipulated or changed to observe its effect on the dependent variable.