By the Fifteenth Century, the Craftspeople of Venice

question 10

Multiple Choice

By the fifteenth century, the craftspeople of Venice

• A) had all moved to the mainland, because real estate prices in the city were too high.
• B) had learned to make luxury goods that were previously only available as imports.
• C) had been put out of business by lower-priced imports from China.
• D) had been forced to abandon their guilds.
• E) were mostly Jewish.

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Definitions:

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-run average total costs.

Constant Returns to Scale

A situation in which the proportionate increase in inputs leads to an equal proportionate increase in outputs, meaning costs and outputs scale equally as production expands.

Diseconomies of Scale

A situation where a business's cost per unit increases as it produces more items, due to inefficiencies that arise with scaling up production.

Plant Size

Refers to the physical capacity or output level of a manufacturing or production facility.