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:

Carrier

A person whose genotype includes a gene that is not expressed in the phenotype. The carried gene occurs in half of the carrier’s gametes, and thus is passed on to half of the carrier’s children. If such a gene is inherited from both parents, the characteristic appears in the phenotype.

Multifactorial

Involving or resulting from many different factors or causes, often used in the context of genetics, diseases, or complex traits.

Polygenic

Referring to a trait that is influenced by multiple genes, often resulting in a continuous range of outcomes.

Nonadditive

Relating to a process or property that is not additive, meaning it does not combine or sum up in a simple or straightforward way.