When Economies of Scale Are Present

question 153

Multiple Choice

When economies of scale are present,

• A)costs per unit decline as output expands.
• B)the government feels responsible for breaking up the firm.
• C)firms always make handsome profits.
• D)costs fall as the size of the product is increased.

---

Definitions:

Mediator

An impartial individual who facilitates communication and negotiation between disputing parties to help them reach a voluntary agreement.

Two-Party Negotiation

A process where two parties discuss their differences and attempt to reach an agreement or solution.

Compatible Interests

Interests that align well together, allowing individuals or groups to engage cooperatively in activities or goals.

Test of Wills

A situation or contest in which individuals or groups challenge each other's resolve or determination.