Economies of Scale Are Said to Exist When

question 141

Multiple Choice

Economies of scale are said to exist when

• A)inputs are increased by some percentage and output increases by the same percentage.
• B)inputs are increased by some percentage and output increases by a lesser percentage.
• C)inputs are increased by some percentage and output increases by a greater percentage.
• D)the LRATC curve slopes upward.
• E)none of the above

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Definitions:

Enforceable

A term referring to an agreement, contract, or law that is legally valid and can be upheld or compelled in a court of law.

Partnership

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Individual

Pertaining to or characteristic of a single, particular person or thing as opposed to a group.

Mining Partner

A member of a partnership formed for the purpose of mining activities, sharing in the profits and liabilities of the venture.