External Economies of Scale Arise When the Cost Per Unit

question 30

Multiple Choice

External economies of scale arise when the cost per unit

• A)falls as the industry and the average firm grows larger.
• B)remains constant over a broad range of output.
• C)rises as the industry and the average firm grows larger.
• D)rises as the industry grows larger and falls as the average firm grows larger.
• E)falls as the industry grows larger and rises as the average firm grows larger.

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Definitions:

Mutations

Changes in the DNA sequence of an organism's genome, which can result in variation within the population.

Doomsday Machine

A hypothetical device or concept often associated with nuclear warfare, designed to automatically trigger an apocalyptic retaliation if a certain attack is detected.

Spurious Information

Information that appears to be valid and relevant to a decision or analysis but is actually false and misleading.

Negative Framing Effect

A psychological phenomenon where people make decisions based on the presentation of negative outcomes rather than positive ones, even when both presentations convey the same information.