​What Are Economies of Scale

question 22

Multiple Choice

​What are economies of scale?

• A)​decreasing average costs as production increases
• B)increasing average costs as production increases
• C)increasing fixed costs as production increases
• D)​none of the above

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Definitions:

Earnings Performance

An evaluation of a company's profitability over a specific period, often analyzed through metrics like EPS (earnings per share).

Accounting Period

A specific period of time used for accounting purposes, during which financial statements are prepared.

Income Statement

An Income Statement is a financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its financial performance.

Net Income

The amount of profit left after all operating expenses, taxes, and interest payments are deducted from total revenue.