Which of the Following Best Describes Economies of Scale

question 73

Multiple Choice

Which of the following best describes economies of scale?

• A)The average cost of production decreases as the level of output increases.
• B)The effects on costs related to managerial ability and other hard-to-quantify factors.
• C)Cost savings are realized from using many of the same inputs to produce multiple products.
• D)The average cost of production increases as the level of output increases.
• E)Cost increases are realized from using many of the same inputs to produce multiple products.

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Definitions:

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To rewrite an expression in an extended form, often used to simplify expressions by removing parentheses.

Properties

Characteristics or rules that define how operations are performed on numbers and variables, including distributive, associative, and commutative properties.

Logarithms

Mathematical functions that determine the exponent or power to which a base number is raised to obtain a certain value, often written as \(\log_b(x)\).

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To increase in size, number, or importance, or to make something increase in this way.