A Firm Reaping Economies of Scale Is Typically Also Achieving

question 63

Multiple Choice

A firm reaping economies of scale is typically also achieving:

• A) decreasing returns to scale
• B) decreasing marginal returns to a fixed factor
• C) increasing returns to scale
• D) increasing marginal returns to a fixed factor

---

Definitions:

Construction

The process or industry involved in assembling infrastructure or building structures from individual components.

Tournament Pay

A form of compensation in which the top performer (or performers) receives much higher rewards than do other competitors, even if the others perform at only a slightly lower level.

Compensating Differential

Additional payment or benefit given to an employee to offset or compensate for undesirable aspects of a job.

Base Pay

The initial rate of compensation that an employee receives before any bonuses, benefits, or raises are added.