When There Are External Economies of Scale,an Increase in the Size

question 27

Multiple Choice

When there are external economies of scale,an increase in the size of the market will

• A) increase the number of firms and lower the price per unit.
• B) increase the number of firms and raise the price per unit.
• C) decrease the number of firms and raise the price per unit.
• D) decrease the number of firms and lower the price per unit.
• E) not affect the number of firms, but will lower the price per unit.

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Definitions:

Short-Term Assets

Assets expected to be converted into cash or used up within one year, such as inventory or accounts receivable.

Converted

This refers to changing something from one use, function, or purpose to another, such as converting raw materials into finished goods or converting an industrial building into a residential space.

Sovereign Wealth Fund

State-owned investment funds or entities that manage national savings for the purposes of investment and maintaining the country's wealth.

Private Equity Fund

A type of investment fund that pools money from investors to acquire stakes in private companies with the aim of realizing a profit through future sales or public offerings.