When Per-Unit Output Costs Fall as Output Increases, This Is

question 65

Multiple Choice

When per-unit output costs fall as output increases, this is called:

• A) economies of scale.
• B) economies of scope.
• C) learning by doing.
• D) diminishing marginal returns.

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Definitions:

Normative

Pertaining to prescriptive assessments or statements that express judgments about what ought to be, as opposed to descriptive statements which detail what is.

Government Spending

The total amount of public expenditure by the government on various services and infrastructure, contributing to the nation's economic activity.

Normative

Relating to prescriptive or value-based judgments, indicating what should be rather than what is.

Oil Imports

The purchase of foreign-sourced oil for domestic use, reflecting a country's demand for energy resources not available within its own borders.