Economies of Scale _____

question 73

Multiple Choice

Economies of scale _____.

• A)exist when cost per unit increases with decrease in volume
• B)are not more relevant in some industries than others
• C)arise from the ability to spread fixed costs of production
• D)produce cost advantages for smaller firms over larger firms

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Definitions:

Common Carrier

is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport.

Independent Contractor

A person or entity engaged in a work performance agreement who is not considered an employee and does not receive employee benefits.

Agent

An individual authorized to act on behalf of another person or entity, often in business transactions or negotiations.

Simple Delivery Contract

An agreement focusing on the delivery of an item or service without complicated terms.