Economies of Scale Exist When

question 46

Multiple Choice

Economies of scale exist when:

• A) increasing the scale of production leads to a lower cost per unit output
• B) doubling the amount of capital more than doubles total output
• C) doubling the amount of labour more than doubles the amount of output
• D) any of the conditions under A, B, or C occurs

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Definitions:

Bounded Rationality

The concept that decision-making is limited by the information available, the cognitive limitations of the individual, and the finite amount of time available to make a decision.

Baseball Diamond

A four-cornered infield where baseball is played, consisting of home plate, first base, second base, and third base in a diamond shape.

Attributions

Attributions are the explanations or reasons we construct for why things happen, including the behaviors and actions of ourselves and others.

Highly Subjective

Relating to personal opinions, feelings, and preferences rather than external facts or evidence.