Internal Economies of Scale Occur When

question 2

Multiple Choice

Internal economies of scale occur when:

• A) Costs fall over time.
• B) Revenue falls over time.
• C) Unit costs fall as the firm's scale increases.
• D) The price falls with more output.

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Definitions:

National Parks

Protected areas of natural significance designated by national governments for conservation purposes, and for the enjoyment and recreation of the public.

Marginal Benefit

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.

Pollution Emission Permits

Licenses or allowances issued by governments that grant the holder the right to emit a specific quantity of pollutants into the environment.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.