When Economies of Scale Are Large, Firms Can Reduce Their

question 104

Multiple Choice

When economies of scale are large, firms can reduce their average total cost by

• A)selling off their subsidiaries.
• B)merging into an even larger firm.
• C)eliminating the bureaucratic costs.
• D)hiring professional managers.

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Definitions:

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Amount of Television Viewing

Measures the total time an individual dedicates to watching television over a specific period.

Independent Variable

The variable in an experiment or study that is manipulated or controlled by the researcher to observe its effect on the dependent variable.

Level of Impulsivity

A measure of how much an individual makes quick decisions without considering the consequences.