A Master Service Agreement (MSA) Is a Contract That Defines

question 35

True/False

A master service agreement (MSA) is a contract that defines the terms of future contracts between parties, such as payment terms or arbitration arrangements.

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Definitions:

Diseconomies of Scale

The phenomenon where, as a firm scales up its production, the per unit cost starts to increase, typically due to inefficiencies.

Economies of Scale

Economies of scale occur when a company reduces costs per unit due to an increase in production, typically achieved through operational efficiency and larger volume production.

Constant Returns to Scale

A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor, indicating proportionate scalability.