Which of the Following Means of Production Is Crucial to Most

question 73

Multiple Choice

Which of the following means of production is crucial to most others?

• A) Land
• B) Vehicles
• C) Factories
• D) Machines

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Definitions:

Economies of Scale

Savings achieved by companies because of larger operational volumes, where the cost for each unit produced tends to drop as the scale of production grows.

Long-run Average Cost

The total cost per unit of output produced, when all input factors are variable, considered over a sufficient period.

Long-run Average Cost

The average cost per unit of output over a long period, where all inputs can be adjusted by firms. This includes the cost of changing production levels and entering or exiting an industry.

Economies of Scale

Economies of scale refer to the reduced costs per unit that businesses experience as their operation size increases, typically resulting in lower costs per unit as the scale expands.