Economies of Scale Are Said to Exist Whenever

question 43

Multiple Choice

Economies of scale are said to exist whenever:

• A) the learning curve is upward-sloping.
• B) increases in output bring about higher output.
• C) increases in output bring about higher input prices.
• D) the elasticity of total cost with respect to output is greater than 1.
• E) the long-run average cost curve is downward-sloping.

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Definitions:

Bonds

Fixed income investments representing loans made by an investor to a borrower, typically corporate or governmental.

Interest

The cost of borrowing money or the payment received for lending money, usually calculated as a percentage of the principal amount.

Exchange Rates

The monetary value of one currency when swapped for another.

Journal Entries

The recordation of financial transactions in a company's accounting system, which includes a debit and credit entry for each transaction.