Internal Economies of Scale Occur at the ________ Levels

question 5

Multiple Choice

Internal economies of scale occur at the ________ levels.

• A) plant and firm
• B) plant and industry
• C) firm and industry
• D) plant, firm, and industry

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Definitions:

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.

Revenue

The complete sum of revenue a business earns from sales of goods or provision of services within a designated timeframe.

Controlling Costs

The process of monitoring, managing, and regulating expenses to operate within the budget and maximize profitability.

Residual Income

The income that remains after deducting all required costs of capital and operating expenses, indicating the net income generated beyond the minimum rate of return.