When Economies of Scale Exist

question 97

Multiple Choice

When economies of scale exist,

• A)production costs per unit increase as output expands.
• B)production costs per unit decline as output expands.
• C)total production costs decrease.
• D)total production costs increase.

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Definitions:

Average Total Assets

The mean value of all the assets owned by a company over a specific time period.

Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets to generate profit, calculated by dividing net income by total assets.