Economies of Scale Are Created by Greater Efficiency of Capital

question 5

Multiple Choice

Economies of scale are created by greater efficiency of capital and by:

• A) longer chains of command in management.
• B) better wages for labor.
• C) smaller plant sizes.
• D) increased specialization of labor.

---

Definitions:

Environmental Impacts

The effect of human activities and natural events on the natural environment, including changes to air, water, and land.

Sustainability

The practice of maintaining processes or systems in a way that does not deplete natural resources, ensuring long-term ecological balance.

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors.

Environmental Costs

Expenses associated with the negative impact of a company's operations on the natural environment, including waste disposal, pollution control, and resource depletion.