The Fact That a Single Large Factory May Be More

question 14

Multiple Choice

The fact that a single large factory may be more efficient than several smaller factories of the same total capacity is a reflection of

• A) increasing returns to scale.
• B) the law of diminishing marginal returns.
• C) comparative advantage.
• D) the crowding-out effect.
• E) reproduction cost of assets.

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Definitions:

Probabilistic Events

Events or outcomes that are unpredictable to a degree but can be measured in terms of probabilities or likelihoods.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Desired Goal

An objective or outcome that an individual aims to achieve or reach.

Donald Hebb

Canadian psychologist best known for his work in the field of neuropsychology and his proposal that neurons that fire together, wire together.