The Manager of HDG Computers Reports That If Output Expands

question 33

Multiple Choice

The manager of HDG Computers reports that if output expands in the long run then average costs will rise.This is an example of

• A) economies of scale.
• B) diseconomies of scale.
• C) minimum efficient scale.
• D) constant returns to scale.

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Definitions:

Creditor Beneficiary

A third party who benefits from a contract made between two other parties, especially in scenarios where one party promises to pay a debt owed to the third party.

Assigns

Individuals or entities to which rights or property are legally transferred or passed on.

Satisfactory Performance

The degree to which a task, responsibility, or duty is completed adequately or meets the expected standards.

Express Condition

A clearly stated, specific condition in a contract that must be met for the performance or continuation of that contract to be required.