"Lower Costs Through Economies of Scale" Refers To

question 43

Multiple Choice

"Lower costs through economies of scale" refers to:

• A)one of the reasons for restricting international trade
• B)the advantage that can sometimes arise when companies can sell to international markets
• C)the way in which big companies can dominate domestic markets when there is no trade
• D)the increased variety of goods that can be accessed in a free-trade economy

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Definitions:

Periodic Net Income

The net income calculated at specific intervals, such as monthly or quarterly, reflecting the profitability of a company during that time period.

Dividend Revenue

Income earned from an investment in the form of dividends, typically from holding shares of another company.

Outstanding Shares

Outstanding shares refer to the total number of shares of stock that are owned by shareholders at any given time, including shares held by institutional investors and restricted shares held by company insiders.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but does not fully control it.