When It Is Cheaper for One Firm to Produce a Number

question 61

Multiple Choice

When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s) .

• A)economies of scale
• B)economies of scope
• C)diminishing marginal returns
• D)marginal cost pricing

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Definitions:

Amps

A unit of electrical current, shorthand for amperes, representing the flow of electric charge through a conductor.

SAE Relay

An electromechanical switch that meets the standards set by the Society of Automotive Engineers, used for controlling high power circuits with a low power signal.

Common Terminal

An electrical connection point used in circuits that serves as a common reference point for multiple components.

Light Energy

The visible portion of the electromagnetic spectrum perceived by the human eye and capable of producing illumination.