If a Firm Wants to Capitalize on Economies of Scale,how

question 104

Multiple Choice

If a firm wants to capitalize on economies of scale,how may it be able to do so

• A)by assigning limited tasks to employees, so they can master those tasks
• B)by employing a smaller number of workers
• C)by producing a smaller quantity of output
• D)by producing only one product

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Definitions:

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating how much each unit contributes to covering fixed costs and generating profit.

Break-even Point

A stage where total sales or production volume exactly matches the overall expenses, consequently yielding no financial gain or deficit.

Break-even Point

The financial stage where total costs equal total revenue, meaning the business is neither making a profit nor a loss.

Unit Variable Costs

Costs that vary directly with the production volume, per unit produced.