​When There Are Economies of Scale

question 45

Multiple Choice

​When there are economies of scale,

• A)​per-unit costs increase as output increases
• B)per-unit costs decrease as output increases
• C)per-unit costs are constant as output increases
• D)​output does not affect per-unit costs

---

Definitions:

Golden Parachute

A substantial benefits package given to top executives if the company is taken over by another firm, and the executives are terminated as a result of the takeover.

Market Share

The portion of a market controlled by a particular company or product.

Flood Control System

involves infrastructure and strategic planning aimed at reducing or preventing the damage caused by excessive water levels, including dams, levees, and drainage systems.

Expected Loss

The anticipated amount of loss a party incurs due to risk, calculated as the sum of all possible losses each multiplied by the probability of that loss occurring.