Which of the Following Explains Why the World Market May

question 147

Multiple Choice

Which of the following explains why the world market may support only one or two firms worldwide?

• A) constant returns to scale
• B) large economies of scale
• C) comparative advantage
• D) learning by doing

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Definitions:

Maintenance Expenses

Costs incurred in the upkeep of property or equipment to ensure its continued functionality and efficiency.

Square Footage

The measurement of area expressed in square feet, commonly used to determine the size of a building or room.

Direct Expenses

Costs that are directly traceable to a specific cost object, such as a product, department, or project.

Indirect Expenses

Costs that are not directly linked to the production of goods or services, such as administration and marketing expenses.