Economies of Scale Are Said to Exist When

question 154

Multiple Choice

Economies of scale are said to exist when

• A)inputs are increased by some percentage and output increases by the same percentage.
• B)inputs are increased by some percentage and output increases by a lesser percentage.
• C)inputs are increased by some percentage and output increases by a greater percentage.
• D)the LRATC curve slopes upward.

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Definitions:

Quality Standards

Established criteria or benchmarks that describe the characteristics of a product, service, or process to ensure it meets customer and regulatory requirements.

Inventories Classified

The categorization of stock or inventory based on various criteria, such as type, usage rate, or value, to ensure efficient management and control.

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Supply Chain

The supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.