Economies of Scale Are Created by Greater Efficiency of Capital

question 5

Multiple Choice

Economies of scale are created by greater efficiency of capital and by:

• A) longer chains of command in management.
• B) better wages for labor.
• C) smaller plant sizes.
• D) increased specialization of labor.

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Definitions:

Pre-Industrial Age

A period before the widespread use of machines and industrial production processes, characterized by agrarian economies, manual labor, and artisanal crafts.

Subsistence Farming

A self-sufficiency farming system in which farmers focus on growing enough food to feed themselves and their families.

Charles River Bridge

refers to a historical case, Charles River Bridge v. Warren Bridge (1837), in which the U.S. Supreme Court ruled on issues of competition and public convenience regarding charter rights.

Old Charters

Documents representing the earliest forms of incorporation for colonies, companies, universities, and cities, outlining their rights, privileges, and organizational structure.