As Industry Output Increases, Suppose That New Knowledge About Production

question 125

Multiple Choice

As industry output increases, suppose that new knowledge about production technology spreads among firms in the area through direct contacts among firms or as workers transfer from firm to firm.Which concept does this example demonstrate?

• A) internal economies of scale
• B) external economies of scale
• C) the home market effect
• D) specialization in production

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Definitions:

Stopped Payment

A request made to a financial institution to not pay or cancel a check or payment that has been issued but not yet cashed.

$500 Check

A bank-issued document that orders the bank to pay the stated amount, in this case, five hundred dollars, from the issuer's account to the entity or individual named on the check.

Recover in Court

The process of obtaining a judicial remedy or compensation through legal proceedings.

Drawee

The party in a financial transaction who is directed to pay a specified amount of money on a check or draft.