According to the Data on Real U.S.GDP

question 2

Multiple Choice

According to the data on real U.S.GDP,

• A)economic growth has been irregular, with some periods of downturns.
• B)economic growth has been consistent, but with a few downturns.
• C)economic growth has been extremely rapid, but also includes major collapses.
• D)economic growth has been slight, but downturns have also been eliminated.

Understand the importance and process of capital budgeting in corporate finance.

Understand the influence of political/legal and economic changes on market opportunities.

Recognize the importance of staying in touch with customers and responding to marketplace changes.

Identify the objective of the product decision and the components of a strong product strategy.

---

Definitions:

Economies of Scale

Cost advantages that a business can achieve due to an increase in the scale of production, leading to lower per-unit costs.

Diseconomies of Scale

The phenomenon where, as a firm or production process increases in size beyond a certain point, the cost per unit increases, leading to reduced efficiency.

Production Volume

The total quantity of products manufactured within a specific period, indicating the level of output.

Economies of Scale

The cost advantage achieved when production becomes efficient, as fixed costs are spread over more units of output.