A Situation Where the Level of Output, Scale and Average

question 8

Multiple Choice

A situation where the level of output, scale and average costs are all rising is called

• A) decreasing returns to scale
• B) diseconomies of scale
• C) diminishing returns to scale
• D) both a and b are correct

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Definitions:

Brand Equity

The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.

Consumers

Individuals or groups who purchase goods or services for personal use and not for manufacturing or resale.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Value

The importance, worth, or usefulness of something, often considered in terms of how much something is worth to someone.