Economies of Scale Occur When

question 132

Multiple Choice

Economies of scale occur when

• A)long-run average total costs rise as output increases.
• B)long-run average total costs fall as output increases.
• C)average fixed costs are falling.
• D)average fixed costs are constant.

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Definitions:

Competition

The rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Vertical Merger

A merger between two companies that operate at separate stages of the production process for a specific finished product.

Manufacturing Firm

A company engaged in the industrial process of producing goods through physical, chemical, or mechanical transformation of materials or components.

Retail Chain

A network of stores operated by the same company, offering similar or related products or services to consumers.