Firms Pool Similar Resources Typically to ________

question 25

Multiple Choice

Firms pool similar resources typically to ________.

• A)increase the cost per unit
• B)decrease administrative costs
• C)create standardized products at a much lower cost
• D)share the risks associated with conducting a particular activity

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Definitions:

Economies Of Scale

Economies of scale are cost advantages reaped by companies when production becomes efficient, leading to a reduction in the per-unit cost as the scale of operations increases.

Fixed Cost

A cost that does not change with an increase or decrease in the number of goods or services produced or sold.

Plant

A living organism of the kind exemplified by trees, shrubs, herbs, grasses, ferns, and mosses, typically growing in a permanent site, absorbing water and inorganic substances through its roots, and synthesizing nutrients in its leaves by photosynthesis using the green pigment chlorophyll.

Total Product Curve

A curve that shows the relationship between the quantity of inputs used in production and the quantity of output from production.