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

---

Definitions:

Properly Delivered

Pertains to goods or documents being conveyed to the correct recipient in good condition and within the agreed timeframe.

Bearer Paper

A negotiable instrument that is payable to whoever holds the document; the physical possession of the document is the only requirement for entitlement to payment.

Stop Payment Order

A stop payment order is a request made to a bank or financial institution to cancel a check or payment before it is processed or cashed.

Holder In Due Course

A party possessing a negotiable instrument, such as a check or promissory note, who has certain rights to payment and is protected against some defenses if the instrument was acquired in good faith.