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:

Inability

The lack of capacity, means, or skill to perform effectively.

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth; can also refer to the cell's control center that houses DNA.

Neuron

A basic unit of the nervous system that transmits electrical and chemical signals in the body.

Acute Stress

A form of stress that is brief and related to specific events or situations, often perceived as within one's coping abilities.