Economies of Scale Occur When

question 2

Multiple Choice

Economies of scale occur when

• A)a firm's long-run average total costs fall as it increases the quantity of output it produces.
• B)the marginal product of labor is greater than the average product of labor.
• C)short-run marginal cost falls.
• D)the demand for a firm's output increases.

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Definitions:

Integrated

Integrated refers to systems, processes, or organizations that are coordinated and combined in a unified manner, ensuring seamless operation and efficiency.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Human Resources

The department within an organization that handles recruitment, management, and direction for the people who work in the organization.

Tangible Assets

Physical and material assets owned by a business, such as machinery, buildings, and land, that have a quantifiable market value.