Which of the Following Paired Concepts Are Equivalent to Each

question 19

Multiple Choice

Which of the following paired concepts are equivalent to each other?

• A) increasing costs; economies of scale
• B) increasing returns; diseconomies of scale
• C) increasing returns; decreasing costs
• D) constant costs; economies of scale
• E) increasing returns; increasing costs

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Definitions:

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; calculated by dividing sales over a period by the average investment.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales by comparing net income and net sales.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; the ratio of the cost of goods sold to the average inventory.

Managerial Efficiency

The effectiveness with which managers utilize resources and make decisions to achieve the organization's goals.