Which of the Following Is a Characteristic of Economies of Scale

question 24

Multiple Choice

Which of the following is a characteristic of economies of scale?

• A)The average cost declines as output increases
• B)The average cost increases as output increases
• C)The average cost remains constant as output increases
• D)The average costs are cheaper when a firm produces a wider variety of goods
• E)The average cost curve takes the form of a U-shape

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Definitions:

Established Patterns

Predefined or widely recognized ways in which processes, behaviors, or activities are conducted within a particular context.

Bureaucratic Social Structures

Organized systems of administration in societies or organizations, characterized by hierarchical positions and written rules.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment or surrounding.

Breakdown Theory

A sociological theory suggesting that social breakdown and disorganization lead to the emergence of deviant behavior and social problems.