Economies of Scale Imply That Within Some Range a Firm

question 124

Multiple Choice

Economies of scale imply that within some range a firm can increase the size of operation and

• A) total cost will decrease.
• B) fixed cost will decrease.
• C) average total cost will decrease.
• D) average total cost will increase.
• E) average variable cost will decrease.

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Definitions:

Foreign Assignments

Work tasks or roles assigned to employees outside their home country, often for an extended period.

Direct Foreign Investment

This refers to the investment by a company or individual in one country in business interests located in another country, often by buying a company in the target country or by expanding operations of an existing business in that country.

Internationalization process

The strategy through which a business expands its operations and presence into international markets.

Operations VP

A high-level executive who oversees the day-to-day operations and ensures they align with organizational goals.