Related to the Economics in Practice on Page 197

question 8

Multiple Choice

Related to the Economics in Practice on page 197. Which of the following represents a situation in which a school is experiencing economies of scale?

• A) Student enrollment increases by 30 percent and average total cost increases by 50 percent.
• B) Student enrollment increases by 50 percent and average total cost increases by 20 percent.
• C) Student enrollment increases by 25 percent and average total cost decreases by 10 percent.
• D) Student enrollment increases by 30 percent and average total cost does not change.

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Definitions:

Assignment

The allotment or designation of a task, duty, or responsibility to someone.

Co-payment

A co-payment is a fixed amount paid by a patient for receiving a particular medical service, with the remaining balance covered by insurance.

Professional Services

Services provided by individuals or companies that require a high level of training or education, typically in specialized fields.

Specified Amount

A particular or set quantity determined or designated in a given context.