The Cost of Illness Approach Measures ____________, in Order to Estimate

question 8

Multiple Choice

The cost of illness approach measures ____________, in order to estimate the benefits of pollution control in terms of reduced health related costs.

• A)direct medical related expenses only
• B)both direct and indirect costs of illness
• C)only indirect expenses associated with illness
• D)increases in quality of life

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Definitions:

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where the average cost per unit decreases as production scales up.

Diseconomies of Scale

The phenomenon where a company's production costs increase as it produces more, resulting in a decrease in efficiency.

Output Units

Quantitative measures of production, representing the number of units of goods or services produced.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.