The Reduction in Average Cost Resulting from an Increase in the Volume

question 65

Multiple Choice

The reduction in average cost resulting from an increase in the volume of a good or service produced is called

• A) information cost.
• B) transactions cost.
• C) diminishing returns.
• D) economies of scale.

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Definitions:

Conditional

A type of logical statement that connects two statements in a cause-and-effect relationship, usually formulated as "if-then."

Biconditional

A logical statement indicating a true conditional statement and its converse are true; often represented by the phrase "if and only if".

Component

A part or element of a larger whole, especially in a mechanical or electronic system.

Equivalent Statements

Statements that are logically identical in their truth values, meaning if one is true, the other is true as well, and vice versa.