Economies of Scale Imply That Within Some Range One Can

question 83

Multiple Choice

Economies of scale imply that within some range one can increase the size of operation and:

• A) total cost will decrease.
• B) fixed cost will decrease.
• C) average total cost will decrease.
• D) average total cost will increase.
• E) average variable cost will decrease.

---

Definitions:

Financing Statement

A financing statement is a document filed by a creditor to indicate a security interest in the assets of a debtor, typically used in relation to secured transactions.

Purchase Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to repay a loan used to purchase the property.

Bankruptcy

A legal process that allows individuals or entities unable to meet their financial obligations the opportunity to discharge or reorganize their debts.

Court Order

An official proclamation by a judge that defines the legal relationships between the parties to a hearing, a trial, an appeal or other court proceedings.