Economies of Scale Are Cost Advantages That Accrue for Firms

question 71

Multiple Choice

Economies of scale are cost advantages that accrue for firms with

• A) high fixed costs.
• B) low employee turnover.
• C) larger output.
• D) high capital risks.

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Definitions:

Responsiveness

The quality of reacting quickly and positively to changes, inquiries, or requests.

Collective Bargaining Agreements

Legal contracts between employers and workers' unions outlining wages, hours, benefits, and working conditions.

Rank and File Approval

The process by which ordinary members of an organization, particularly a union, endorse decisions or policies, typically through voting.

Pattern Bargaining

A labor negotiation strategy where the terms agreed upon in one bargaining unit or company serve as a model for negotiations in others.