External Economies of Scale Arise When the Cost Per Unit

question 25

Multiple Choice

External economies of scale arise when the cost per unit

• A) falls as the industry grows larger and rises as the average firm grows larger.
• B) rises as the industry grows larger and falls as the average firm grows larger.
• C) falls as the industry and the average firm grows larger.
• D) remains constant over a broad range of output.
• E) rises as the industry and the average firm grows larger.

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Definitions:

Control Unit

The part of a computer's CPU responsible for controlling the processor's actions.

CPU Usage

The amount of processing power that a computer's central processing unit is using at any given time.

Throughput

The amount of data processed by a system or program in a given amount of time.

Capacity

The maximum amount that something can contain or produce, such as the storage capacity of a hard drive or the processing power of a computer.