Economies of Scale Arise When

question 57

Multiple Choice

Economies of scale arise when:

• A)workers are able to specialise in a particular task
• B)an economy is self-sufficient in production
• C)individuals in a society are self-sufficient
• D)fixed costs are large relative to variable costs

---

Definitions:

Excessive Concentrations

An overinvestment in a particular asset, sector, or market which increases risk due to lack of diversification.

PCBs

Polychlorinated biphenyls, a group of man-made organic chemicals known for their environmental and health hazards.

Hazardous Area

A location that poses risks due to potentially dangerous conditions, such as the presence of flammable gases, combustible dust, or other explosive materials.

Green Taxes

Environmental taxes levied on goods and services that cause environmental pollution, aimed at encouraging eco-friendly practices.