External Economies of Scale Arise When the Cost Per Unit

question 22

Multiple Choice

External economies of scale arise when the cost per unit

• A) rises as the industry and the average firm grows larger.
• B) remains constant over a broad range of output.
• C) falls as the industry and the average firm grows larger.
• D) falls as the industry grows larger and rises as the average firm grows larger.
• E) rises as the industry grows larger and falls as the average firm grows larger.

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Definitions:

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Stages Of Needs

A hierarchical structure of human needs, often depicted in models like Maslow's hierarchy, ranging from the most basic physiological needs to higher levels such as self-actualization.

Deficit Needs

According to Maslow's hierarchy of needs, these are the basic requirements for human survival and well-being, such as food, safety, and love, that must be fulfilled before achieving higher-level needs.

Adaptive Coping

Strategies or mechanisms employed to manage internal or external demands that are appraised as stressful or challenging.