If a Firm Increases Its Output in the ________ and Unit

question 25

Multiple Choice

If a firm increases its output in the ________ and unit costs ________,then the firm is experiencing ________ of scale.

• A) long-run; increase; diseconomies
• B) short-run; decrease; economies
• C) long-run; decrease; diseconomies
• D) short-run; decrease; diseconomies
• E) long-run; increase; economies

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Definitions:

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, often because of defects or errors in the shipment.

Returns

The process of a customer returning previously purchased merchandise back to the seller, or the amount of profit generated from an investment.

Gross Margin Ratio

A financial indicator that calculates the disparity between sales and the cost of goods sold, represented as a portion of sales revenue.

Net Sales

The total revenue from sales reduced by returns, allowances for damaged or missing goods, and discounts.