Economies of Scale Imply That Within Some Range One Can

question 39

Multiple Choice

Economies of scale imply that within some range one 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.

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Definitions:

SAM

Usually refers to Serviceable Available Market, which is the portion of the market that can be captured or served by a company.

SOM

Abbreviation typically for "Share Of Market," referring to the percentage of a market controlled by a particular company, product, or brand.

Sanity Checks

Quick, basic tests or analyses run to ensure that assumptions or results are rational and feasible.

Market Size

The total volume or value of sales within a defined market over a specific period of time.