Which of the Following Suggests That by Widening the Market's

question 28

Multiple Choice

Which of the following suggests that by widening the market's size,international trade can permit longer production runs for manufacturers,which leads to increasing efficiency?

• A) Economies of scale
• B) Diseconomies of scale
• C) Comparative cost theory
• D) Absolute cost theory

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in its value over time.

Gain or Loss

The financial result of selling an asset for more or less than its purchase price, respectively.

Fixed Asset Turnover

A financial ratio that measures a company's effectiveness in generating revenue from its fixed assets, such as property, plant, and equipment.

Sales

The activities involved in selling goods or services in return for money or other compensation.