When Economies of Scale Exist, What Can We Conclude

question 35

Multiple Choice

When economies of scale exist, what can we conclude?

• A) Per unit production costs decline as output expands.
• B) Marginal cost must decrease as output expands.
• C) Per unit production costs remain constant as output expands.
• D) Per unit production costs increase as output expands.

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Definitions:

Steps

Sequence of actions or procedures followed to achieve a particular end.

Straight Rebuy

A routine purchasing decision in which a business reorders a product or service without any modifications or consideration of new options.

Contract Negotiations

The process of discussing terms and reaching an agreement in a contract, often involving matters such as price, delivery, and terms of service between two or more parties.

Low-involvement

Products or services that require minimal thought and effort from consumers before purchase due to their simplicity and low cost.