Suppose That Gigantic Company Is Increasing in Size

question 67

Multiple Choice

Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, they are able to buy inputs in bulk, resulting in lower input prices. It is likely that continued growth will result in

• A) economies of scale.
• B) Gigantic Company achieving the minimum efficient scale of production.
• C) diseconomies of scale.
• D) increasing marginal returns.

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Definitions:

Vasectomy

A surgical procedure for male sterilization or permanent contraception.

Tubal Ligation

A surgical procedure used for sterilization in which a woman's fallopian tubes are clamped and blocked, or severed and sealed, to prevent eggs from reaching the uterus for fertilization.

Oral Contraceptives

A method of birth control in pill form that is taken orally to prevent pregnancy, typically by altering hormone levels to prevent ovulation.

Abortion Procedure

A medical or surgical intervention carried out to terminate a pregnancy.