Internal Economies of Scale Arise When the Cost Per Unit

question 18

Multiple Choice

Internal economies of scale arise when the cost per unit

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

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Definitions:

Special Price

A discounted pricing strategy applied to products or services for promotional purposes or to certain classes of customers.

European Vacation

A holiday spent in one or more countries in Europe, often characterized by visits to cultural sites, natural landscapes, and experiencing local cuisine.

Clearly Stated

Something presented or expressed in a manner that leaves no doubt about its meaning.

Silence

The absence of sound or the act of refraining from speaking; in legal contexts, it can imply consent or acceptance under certain conditions.