Which of the Following Is an Example of Increasing Returns

question 83

Multiple Choice

Which of the following is an example of increasing returns to scale?

• A)large oil tankers
• B)declining average costs
• C)railroads
• D)metallurgic companies.

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Definitions:

Cooperative Strategy

A cooperative strategy is a collaborative effort between businesses or organizations to achieve a mutual goal or advantage.

Efficient Outcome

A situation where resources are allocated in a way that maximizes net benefits to society and cannot be improved upon by making any one individual better off without making someone else worse off.

Simultaneous Move Game

A strategic situation where all players make their moves at the same time without knowledge of the others' choices.

Centralized Purchasing

The process where one central department within an organization is responsible for making all purchasing decisions to achieve efficiencies and cost savings.