When Economies of Scale Are Present

question 153

Multiple Choice

When economies of scale are present,

• A)costs per unit decline as output expands.
• B)the government feels responsible for breaking up the firm.
• C)firms always make handsome profits.
• D)costs fall as the size of the product is increased.

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Definitions:

Bailee

A bailee is a person or party who has been entrusted with the temporary possession of goods or property belonging to another (the bailor) without transfer of ownership.

Transfer of Securities

The act of moving ownership of stocks, bonds, or other securities from one party to another.

Debtor

An individual or entity that owes money to another party.

Creditor

An entity or person to whom money is owed by another entity or person, known as the debtor.